Cmj de 09012015

40
September 2015 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 MINERS GOLD DIGGING DEEPER INTO THE FUTURE

description

Canadian Mining Journal Sep 2015

Transcript of Cmj de 09012015

Page 1: Cmj de 09012015

September 2015

c a n a d a rsquo s f i r s t m i n i n g p u b l i c a t i o n

wwwcanadianminingjournalcom

MINERSGOLD

DIGGING DEEPER INTO THE FUTURE

CMJSep2015Cover2indd 1 2015-08-21 1031 AM

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 3

For More InformationPlease visit wwwcanadianminingjournalcom

for regular updates on whats happening

with Canadian mining companies and their

personnel both here and abroad A digital

version of the magazine is also available at

wwwdigitalcanadianminingjournalcom

wwwcanadianminingjournalcom

Coming in OctoberCanadian Mining Journalrsquos October issue will take a look at ldquoMining in Quebecrdquo

ABOUT THE COVERThis monthrsquos cover shows the business end of a raise-bore drill at Alamos Goldrsquos Young-Davidson Mine

CANADIANCANADIANIm

age

Nan

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t-Ha

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Ala

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Gol

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FEATURESGOLD IN CANADA12 YOUNG-DAVIDSON GOLD MINEA look at Alamos Goldrsquos Young-Davidson mine in Matachewan Ontario and how itrsquos grown in just over five years from an historic site into one of Canadarsquos larger underground gold mines

18 AGNICO-EAGLE MINESFive Canadian mines help make Agnico-Eagle Mines one of the top gold producers in the country

24 CLAUDE RESOURCESCompany suspends production at northern Saskatchewan gold mines because of threat to workers from nearby forest fires

26 PUMPS AND MININGCanadian Mining Journal takes a look at pumps used for safety and dewatering purposes in and around mine sites plus a maintenance tip on how coatings can provide answers to fluid-handling problems

DEPARTMENTS5 EDITORIALThis month Editor Russell Noble talks about the upcoming federal election and how the colours (red blue orange and green) representing the four main parties combine to make the colour lsquobrownrsquo like mudhellip the stuff the government is stuck in when it comes to decisions involving the mining industry

6 FIRST NATIONSOntario Regional Chief Isadore Day Wiindawtegowinini talks about why the largest obstacle to the relationship between the mining community and First Nations has been bad politics

8 LAWA column by Geoffrey Gilbert a partner at Norton Rose Fulbright Ottawa

10 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility

36 COMMENTSgt Pat Poitevin Senior Investigator Outreach Coordinator Sensitive and International Investigation Unit RCMP talks about stopping bribery and corruption

38 UNEARTHING TRENDSThis monthrsquos column by Bruce Sprague a partner and EYrsquos Canadian Mining and Metals Leader tells readers to beware of the not-so-obvious risks in mining and metals

Mining JournalMining Journal

12

18

24

26

SEPTEMBER 2015 VOL 136 NO 7

Contentsindd 3 2015-08-25 306 PM

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 5

CANADIANCANADIANMining Journal

Established 1882

Canadian 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 Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891

Legal deposit National Library Ottawa Printed in Canada All rights reserved The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes All other rights are reserved and commercial use is prohibited To make use of any of this material you must first obtain the permission of the owner of the copyright For further information please contact Russell Noble at 416-510-6742

Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you If you do not wish your contact information to be made available please contact us via one of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs

September 2015 Vol 136 mdash No 7 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom

Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom

Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom

Art Director Stephen Ferrie

Production Manager Jessica Jubb

Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom

Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom

Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom

Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734

Group Publisher Anthony Vaccaro

EDITORIAL

By Russell Noble

Wallowing in the same old brown stuff

G rade schoolers learn very early in their education that when they mix paint colours something magical appears

right before their eyes In fact the transforma-tion from one colour to another by blending two or more pigments is one of the first scien-tific experiments many of us experience

And just as a reminder to many of you far removed from grade school the basics are blue (PC) and yellow make green (Green Party) red (Liberals) and yellow make orange (NDP) and all of them combined make brown

Thatrsquos right but not by coincidence the colours Irsquove chosen for this exercise also repre-sent the four main parties vying for the leadership of this country And taking this paint-blending charade one step further look what happens when you mix red blue orange and green hellip you get lsquobrownrsquo like mud

And thatrsquos what our federal Parliament turns into once all of the members are com-fortably in their seats and wallow there for the next four years to bicker back and forth with prepared rhetoric to ensure that their names appear on the daily transcripts

Irsquom sure most of you have witnessed this either in person or on television and I hope you agree that itrsquos usually a sad and embarrassing exhibition of grandstanding to confirm their attendance

In any event as wersquove all heard for the past few weeks each and every candidate from the party leaders down have made hugely expensive promises for things that rarely hap-pen once theyrsquore elected

In fact Irsquom still amazed how politicians get away with even promising to commit hundreds of millions even billions of lsquoourrsquo dollars to certain causes when last I heard the country is nearly running on empty when it comes to money

And the mining industry knows this better than anyoneIn recent weeks wersquove heard campaign promises to spend millions of dollars on First

Nations programs the infrastructure daycare power and pollution and even incentives for tourism because Canada is a cheap place to visit now that our dollar hovers around the 75-cent (US) mark but unless I missed it somewhere what about money to help miners and the other resources industries

Loggers and fishermen need support too but for now I want to concentrate on mining and ask why itrsquos not on the agendas of those hoping to move to Ottawa

The last real money that I can recall being committed to mining for exploration and development was for Ontariorsquos lsquoRing of Firersquo and we all know where thatrsquos going at the moment

Itrsquos almost as if the federal government has given up on the development of its resource industries and because of that many investors are following its lead by holding onto their money or worse putting it elsewhere

I know the government is supposed to lead by example but Irsquom afraid that unless the candidates in this coming election step up and look beyond the obvious and slippery issues involving the oil sands and Mike Duffy then I think Canada will just continue slugging its way through the same old muck created by new faces CMJ

Editorialindd 5 2015-08-25 308 PM

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

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First Nationsindd 6 2015-08-25 317 PM

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

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LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

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F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Min

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

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KSB Mining Your partner for pumps valves and service

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Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

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Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

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would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

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1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

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The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
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  • 010
  • 011
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Page 2: Cmj de 09012015

Metso offers a complete range of wear parts and services to improve efficiency throughout the grinding process We also offer comprehensive value added services packages that can help reduce your total cost of ownership and substantially improve the productivity of your processes

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MetsoAdindd 2 2015-08-21 1025 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 3

For More InformationPlease visit wwwcanadianminingjournalcom

for regular updates on whats happening

with Canadian mining companies and their

personnel both here and abroad A digital

version of the magazine is also available at

wwwdigitalcanadianminingjournalcom

wwwcanadianminingjournalcom

Coming in OctoberCanadian Mining Journalrsquos October issue will take a look at ldquoMining in Quebecrdquo

ABOUT THE COVERThis monthrsquos cover shows the business end of a raise-bore drill at Alamos Goldrsquos Young-Davidson Mine

CANADIANCANADIANIm

age

Nan

cy D

uque

t-Ha

rvey

Ala

mos

Gol

d In

c

FEATURESGOLD IN CANADA12 YOUNG-DAVIDSON GOLD MINEA look at Alamos Goldrsquos Young-Davidson mine in Matachewan Ontario and how itrsquos grown in just over five years from an historic site into one of Canadarsquos larger underground gold mines

18 AGNICO-EAGLE MINESFive Canadian mines help make Agnico-Eagle Mines one of the top gold producers in the country

24 CLAUDE RESOURCESCompany suspends production at northern Saskatchewan gold mines because of threat to workers from nearby forest fires

26 PUMPS AND MININGCanadian Mining Journal takes a look at pumps used for safety and dewatering purposes in and around mine sites plus a maintenance tip on how coatings can provide answers to fluid-handling problems

DEPARTMENTS5 EDITORIALThis month Editor Russell Noble talks about the upcoming federal election and how the colours (red blue orange and green) representing the four main parties combine to make the colour lsquobrownrsquo like mudhellip the stuff the government is stuck in when it comes to decisions involving the mining industry

6 FIRST NATIONSOntario Regional Chief Isadore Day Wiindawtegowinini talks about why the largest obstacle to the relationship between the mining community and First Nations has been bad politics

8 LAWA column by Geoffrey Gilbert a partner at Norton Rose Fulbright Ottawa

10 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility

36 COMMENTSgt Pat Poitevin Senior Investigator Outreach Coordinator Sensitive and International Investigation Unit RCMP talks about stopping bribery and corruption

38 UNEARTHING TRENDSThis monthrsquos column by Bruce Sprague a partner and EYrsquos Canadian Mining and Metals Leader tells readers to beware of the not-so-obvious risks in mining and metals

Mining JournalMining Journal

12

18

24

26

SEPTEMBER 2015 VOL 136 NO 7

Contentsindd 3 2015-08-25 306 PM

Precious metals iron ore crushed stone coal chemi-cals ndash whether your material is sitting still or on the move Siemens has a measurement solution for you

Dusty raw materials silo 78 GHz radar saving you maintenance time and installation difficulties

Fast moving minerals ore or coal An award-winning belt scale with more approvals than any on the market

Measuring the flow of slurries with up to 70 suspen-ded solids A Pulsed AC mag flowmeter with magneti-te compensation

Siemens rock solid solutions saving time and money Let us show you how

Solid savings Let us show you how

Rock solid solutions saving you moneyHow much do you spend on instrument maintenance On difficult installation and programming On headache pain relief Lets try something different

siemenscomsensorsmining

Mining 7x10indd 1 2015-08-12 259 PM

Siemensindd 4 2015-08-21 1026 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 5

CANADIANCANADIANMining Journal

Established 1882

Canadian 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 Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891

Legal deposit National Library Ottawa Printed in Canada All rights reserved The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes All other rights are reserved and commercial use is prohibited To make use of any of this material you must first obtain the permission of the owner of the copyright For further information please contact Russell Noble at 416-510-6742

Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you If you do not wish your contact information to be made available please contact us via one of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs

September 2015 Vol 136 mdash No 7 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom

Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom

Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom

Art Director Stephen Ferrie

Production Manager Jessica Jubb

Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom

Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom

Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom

Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734

Group Publisher Anthony Vaccaro

EDITORIAL

By Russell Noble

Wallowing in the same old brown stuff

G rade schoolers learn very early in their education that when they mix paint colours something magical appears

right before their eyes In fact the transforma-tion from one colour to another by blending two or more pigments is one of the first scien-tific experiments many of us experience

And just as a reminder to many of you far removed from grade school the basics are blue (PC) and yellow make green (Green Party) red (Liberals) and yellow make orange (NDP) and all of them combined make brown

Thatrsquos right but not by coincidence the colours Irsquove chosen for this exercise also repre-sent the four main parties vying for the leadership of this country And taking this paint-blending charade one step further look what happens when you mix red blue orange and green hellip you get lsquobrownrsquo like mud

And thatrsquos what our federal Parliament turns into once all of the members are com-fortably in their seats and wallow there for the next four years to bicker back and forth with prepared rhetoric to ensure that their names appear on the daily transcripts

Irsquom sure most of you have witnessed this either in person or on television and I hope you agree that itrsquos usually a sad and embarrassing exhibition of grandstanding to confirm their attendance

In any event as wersquove all heard for the past few weeks each and every candidate from the party leaders down have made hugely expensive promises for things that rarely hap-pen once theyrsquore elected

In fact Irsquom still amazed how politicians get away with even promising to commit hundreds of millions even billions of lsquoourrsquo dollars to certain causes when last I heard the country is nearly running on empty when it comes to money

And the mining industry knows this better than anyoneIn recent weeks wersquove heard campaign promises to spend millions of dollars on First

Nations programs the infrastructure daycare power and pollution and even incentives for tourism because Canada is a cheap place to visit now that our dollar hovers around the 75-cent (US) mark but unless I missed it somewhere what about money to help miners and the other resources industries

Loggers and fishermen need support too but for now I want to concentrate on mining and ask why itrsquos not on the agendas of those hoping to move to Ottawa

The last real money that I can recall being committed to mining for exploration and development was for Ontariorsquos lsquoRing of Firersquo and we all know where thatrsquos going at the moment

Itrsquos almost as if the federal government has given up on the development of its resource industries and because of that many investors are following its lead by holding onto their money or worse putting it elsewhere

I know the government is supposed to lead by example but Irsquom afraid that unless the candidates in this coming election step up and look beyond the obvious and slippery issues involving the oil sands and Mike Duffy then I think Canada will just continue slugging its way through the same old muck created by new faces CMJ

Editorialindd 5 2015-08-25 308 PM

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

First Nationsindd 6 2015-08-25 317 PM

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CGISAdindd 7 2015-08-21 1026 AM

T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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By specializing in shovels instead of lots of different equipment Hitachi does

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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EIR

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WEI

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arks

and

or

regi

ster

ed tr

adem

arks

of W

eir

Engi

neer

ing

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vice

s Lt

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

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wwwgrievecorpcom 847-546-8225

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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generation for the future of miningrdquo

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

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Canada 1-800-892-8293 bull USA 1-800-748-2375

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Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

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Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
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  • 010
  • 011
  • 012-016
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Page 3: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 3

For More InformationPlease visit wwwcanadianminingjournalcom

for regular updates on whats happening

with Canadian mining companies and their

personnel both here and abroad A digital

version of the magazine is also available at

wwwdigitalcanadianminingjournalcom

wwwcanadianminingjournalcom

Coming in OctoberCanadian Mining Journalrsquos October issue will take a look at ldquoMining in Quebecrdquo

ABOUT THE COVERThis monthrsquos cover shows the business end of a raise-bore drill at Alamos Goldrsquos Young-Davidson Mine

CANADIANCANADIANIm

age

Nan

cy D

uque

t-Ha

rvey

Ala

mos

Gol

d In

c

FEATURESGOLD IN CANADA12 YOUNG-DAVIDSON GOLD MINEA look at Alamos Goldrsquos Young-Davidson mine in Matachewan Ontario and how itrsquos grown in just over five years from an historic site into one of Canadarsquos larger underground gold mines

18 AGNICO-EAGLE MINESFive Canadian mines help make Agnico-Eagle Mines one of the top gold producers in the country

24 CLAUDE RESOURCESCompany suspends production at northern Saskatchewan gold mines because of threat to workers from nearby forest fires

26 PUMPS AND MININGCanadian Mining Journal takes a look at pumps used for safety and dewatering purposes in and around mine sites plus a maintenance tip on how coatings can provide answers to fluid-handling problems

DEPARTMENTS5 EDITORIALThis month Editor Russell Noble talks about the upcoming federal election and how the colours (red blue orange and green) representing the four main parties combine to make the colour lsquobrownrsquo like mudhellip the stuff the government is stuck in when it comes to decisions involving the mining industry

6 FIRST NATIONSOntario Regional Chief Isadore Day Wiindawtegowinini talks about why the largest obstacle to the relationship between the mining community and First Nations has been bad politics

8 LAWA column by Geoffrey Gilbert a partner at Norton Rose Fulbright Ottawa

10 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility

36 COMMENTSgt Pat Poitevin Senior Investigator Outreach Coordinator Sensitive and International Investigation Unit RCMP talks about stopping bribery and corruption

38 UNEARTHING TRENDSThis monthrsquos column by Bruce Sprague a partner and EYrsquos Canadian Mining and Metals Leader tells readers to beware of the not-so-obvious risks in mining and metals

Mining JournalMining Journal

12

18

24

26

SEPTEMBER 2015 VOL 136 NO 7

Contentsindd 3 2015-08-25 306 PM

Precious metals iron ore crushed stone coal chemi-cals ndash whether your material is sitting still or on the move Siemens has a measurement solution for you

Dusty raw materials silo 78 GHz radar saving you maintenance time and installation difficulties

Fast moving minerals ore or coal An award-winning belt scale with more approvals than any on the market

Measuring the flow of slurries with up to 70 suspen-ded solids A Pulsed AC mag flowmeter with magneti-te compensation

Siemens rock solid solutions saving time and money Let us show you how

Solid savings Let us show you how

Rock solid solutions saving you moneyHow much do you spend on instrument maintenance On difficult installation and programming On headache pain relief Lets try something different

siemenscomsensorsmining

Mining 7x10indd 1 2015-08-12 259 PM

Siemensindd 4 2015-08-21 1026 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 5

CANADIANCANADIANMining Journal

Established 1882

Canadian 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 Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891

Legal deposit National Library Ottawa Printed in Canada All rights reserved The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes All other rights are reserved and commercial use is prohibited To make use of any of this material you must first obtain the permission of the owner of the copyright For further information please contact Russell Noble at 416-510-6742

Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you If you do not wish your contact information to be made available please contact us via one of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs

September 2015 Vol 136 mdash No 7 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom

Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom

Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom

Art Director Stephen Ferrie

Production Manager Jessica Jubb

Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom

Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom

Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom

Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734

Group Publisher Anthony Vaccaro

EDITORIAL

By Russell Noble

Wallowing in the same old brown stuff

G rade schoolers learn very early in their education that when they mix paint colours something magical appears

right before their eyes In fact the transforma-tion from one colour to another by blending two or more pigments is one of the first scien-tific experiments many of us experience

And just as a reminder to many of you far removed from grade school the basics are blue (PC) and yellow make green (Green Party) red (Liberals) and yellow make orange (NDP) and all of them combined make brown

Thatrsquos right but not by coincidence the colours Irsquove chosen for this exercise also repre-sent the four main parties vying for the leadership of this country And taking this paint-blending charade one step further look what happens when you mix red blue orange and green hellip you get lsquobrownrsquo like mud

And thatrsquos what our federal Parliament turns into once all of the members are com-fortably in their seats and wallow there for the next four years to bicker back and forth with prepared rhetoric to ensure that their names appear on the daily transcripts

Irsquom sure most of you have witnessed this either in person or on television and I hope you agree that itrsquos usually a sad and embarrassing exhibition of grandstanding to confirm their attendance

In any event as wersquove all heard for the past few weeks each and every candidate from the party leaders down have made hugely expensive promises for things that rarely hap-pen once theyrsquore elected

In fact Irsquom still amazed how politicians get away with even promising to commit hundreds of millions even billions of lsquoourrsquo dollars to certain causes when last I heard the country is nearly running on empty when it comes to money

And the mining industry knows this better than anyoneIn recent weeks wersquove heard campaign promises to spend millions of dollars on First

Nations programs the infrastructure daycare power and pollution and even incentives for tourism because Canada is a cheap place to visit now that our dollar hovers around the 75-cent (US) mark but unless I missed it somewhere what about money to help miners and the other resources industries

Loggers and fishermen need support too but for now I want to concentrate on mining and ask why itrsquos not on the agendas of those hoping to move to Ottawa

The last real money that I can recall being committed to mining for exploration and development was for Ontariorsquos lsquoRing of Firersquo and we all know where thatrsquos going at the moment

Itrsquos almost as if the federal government has given up on the development of its resource industries and because of that many investors are following its lead by holding onto their money or worse putting it elsewhere

I know the government is supposed to lead by example but Irsquom afraid that unless the candidates in this coming election step up and look beyond the obvious and slippery issues involving the oil sands and Mike Duffy then I think Canada will just continue slugging its way through the same old muck created by new faces CMJ

Editorialindd 5 2015-08-25 308 PM

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

First Nationsindd 6 2015-08-25 317 PM

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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By specializing in shovels instead of lots of different equipment Hitachi does

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and never compromise on quality and design ThaTrsquos all

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

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Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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TECHNOLOGY

A website that gives full details

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

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1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

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The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 4: Cmj de 09012015

Precious metals iron ore crushed stone coal chemi-cals ndash whether your material is sitting still or on the move Siemens has a measurement solution for you

Dusty raw materials silo 78 GHz radar saving you maintenance time and installation difficulties

Fast moving minerals ore or coal An award-winning belt scale with more approvals than any on the market

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Mining 7x10indd 1 2015-08-12 259 PM

Siemensindd 4 2015-08-21 1026 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 5

CANADIANCANADIANMining Journal

Established 1882

Canadian 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 Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891

Legal deposit National Library Ottawa Printed in Canada All rights reserved The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes All other rights are reserved and commercial use is prohibited To make use of any of this material you must first obtain the permission of the owner of the copyright For further information please contact Russell Noble at 416-510-6742

Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you If you do not wish your contact information to be made available please contact us via one of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs

September 2015 Vol 136 mdash No 7 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom

Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom

Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom

Art Director Stephen Ferrie

Production Manager Jessica Jubb

Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom

Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom

Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom

Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734

Group Publisher Anthony Vaccaro

EDITORIAL

By Russell Noble

Wallowing in the same old brown stuff

G rade schoolers learn very early in their education that when they mix paint colours something magical appears

right before their eyes In fact the transforma-tion from one colour to another by blending two or more pigments is one of the first scien-tific experiments many of us experience

And just as a reminder to many of you far removed from grade school the basics are blue (PC) and yellow make green (Green Party) red (Liberals) and yellow make orange (NDP) and all of them combined make brown

Thatrsquos right but not by coincidence the colours Irsquove chosen for this exercise also repre-sent the four main parties vying for the leadership of this country And taking this paint-blending charade one step further look what happens when you mix red blue orange and green hellip you get lsquobrownrsquo like mud

And thatrsquos what our federal Parliament turns into once all of the members are com-fortably in their seats and wallow there for the next four years to bicker back and forth with prepared rhetoric to ensure that their names appear on the daily transcripts

Irsquom sure most of you have witnessed this either in person or on television and I hope you agree that itrsquos usually a sad and embarrassing exhibition of grandstanding to confirm their attendance

In any event as wersquove all heard for the past few weeks each and every candidate from the party leaders down have made hugely expensive promises for things that rarely hap-pen once theyrsquore elected

In fact Irsquom still amazed how politicians get away with even promising to commit hundreds of millions even billions of lsquoourrsquo dollars to certain causes when last I heard the country is nearly running on empty when it comes to money

And the mining industry knows this better than anyoneIn recent weeks wersquove heard campaign promises to spend millions of dollars on First

Nations programs the infrastructure daycare power and pollution and even incentives for tourism because Canada is a cheap place to visit now that our dollar hovers around the 75-cent (US) mark but unless I missed it somewhere what about money to help miners and the other resources industries

Loggers and fishermen need support too but for now I want to concentrate on mining and ask why itrsquos not on the agendas of those hoping to move to Ottawa

The last real money that I can recall being committed to mining for exploration and development was for Ontariorsquos lsquoRing of Firersquo and we all know where thatrsquos going at the moment

Itrsquos almost as if the federal government has given up on the development of its resource industries and because of that many investors are following its lead by holding onto their money or worse putting it elsewhere

I know the government is supposed to lead by example but Irsquom afraid that unless the candidates in this coming election step up and look beyond the obvious and slippery issues involving the oil sands and Mike Duffy then I think Canada will just continue slugging its way through the same old muck created by new faces CMJ

Editorialindd 5 2015-08-25 308 PM

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

First Nationsindd 6 2015-08-25 317 PM

CGIS has experience working with The Worlds Best Valves controls and

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

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Em

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Arc

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Pho

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aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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res

erve

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EIR

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WEI

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ogo)

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adem

arks

and

or

regi

ster

ed tr

adem

arks

of W

eir

Engi

neer

ing

Ser

vice

s Lt

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EHO

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

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Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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  • 001
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  • 007
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  • 010
  • 011
  • 012-016
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Page 5: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 5

CANADIANCANADIANMining Journal

Established 1882

Canadian 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 Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891

Legal deposit National Library Ottawa Printed in Canada All rights reserved The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes All other rights are reserved and commercial use is prohibited To make use of any of this material you must first obtain the permission of the owner of the copyright For further information please contact Russell Noble at 416-510-6742

Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you If you do not wish your contact information to be made available please contact us via one of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs

September 2015 Vol 136 mdash No 7 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom

Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom

Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom

Art Director Stephen Ferrie

Production Manager Jessica Jubb

Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom

Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom

Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom

Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734

Group Publisher Anthony Vaccaro

EDITORIAL

By Russell Noble

Wallowing in the same old brown stuff

G rade schoolers learn very early in their education that when they mix paint colours something magical appears

right before their eyes In fact the transforma-tion from one colour to another by blending two or more pigments is one of the first scien-tific experiments many of us experience

And just as a reminder to many of you far removed from grade school the basics are blue (PC) and yellow make green (Green Party) red (Liberals) and yellow make orange (NDP) and all of them combined make brown

Thatrsquos right but not by coincidence the colours Irsquove chosen for this exercise also repre-sent the four main parties vying for the leadership of this country And taking this paint-blending charade one step further look what happens when you mix red blue orange and green hellip you get lsquobrownrsquo like mud

And thatrsquos what our federal Parliament turns into once all of the members are com-fortably in their seats and wallow there for the next four years to bicker back and forth with prepared rhetoric to ensure that their names appear on the daily transcripts

Irsquom sure most of you have witnessed this either in person or on television and I hope you agree that itrsquos usually a sad and embarrassing exhibition of grandstanding to confirm their attendance

In any event as wersquove all heard for the past few weeks each and every candidate from the party leaders down have made hugely expensive promises for things that rarely hap-pen once theyrsquore elected

In fact Irsquom still amazed how politicians get away with even promising to commit hundreds of millions even billions of lsquoourrsquo dollars to certain causes when last I heard the country is nearly running on empty when it comes to money

And the mining industry knows this better than anyoneIn recent weeks wersquove heard campaign promises to spend millions of dollars on First

Nations programs the infrastructure daycare power and pollution and even incentives for tourism because Canada is a cheap place to visit now that our dollar hovers around the 75-cent (US) mark but unless I missed it somewhere what about money to help miners and the other resources industries

Loggers and fishermen need support too but for now I want to concentrate on mining and ask why itrsquos not on the agendas of those hoping to move to Ottawa

The last real money that I can recall being committed to mining for exploration and development was for Ontariorsquos lsquoRing of Firersquo and we all know where thatrsquos going at the moment

Itrsquos almost as if the federal government has given up on the development of its resource industries and because of that many investors are following its lead by holding onto their money or worse putting it elsewhere

I know the government is supposed to lead by example but Irsquom afraid that unless the candidates in this coming election step up and look beyond the obvious and slippery issues involving the oil sands and Mike Duffy then I think Canada will just continue slugging its way through the same old muck created by new faces CMJ

Editorialindd 5 2015-08-25 308 PM

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

First Nationsindd 6 2015-08-25 317 PM

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

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F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Min

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

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Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

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Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

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would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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TECHNOLOGY

A website that gives full details

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

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which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

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Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
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Page 6: Cmj de 09012015

W hatrsquos good for First Nations is good for busi-ness Itrsquos a basic fact that all members of the mining community should remember during the federal electionTherersquos an honest truth that

gets lost in politics First Nations are looking for opportunities and partners who respect our rights lands and treaties

When I ran for election I ran on a platform of Treaty imple-mentation and opportunities for youth The principle of shar-ing which is the basis of our Treaty relationship creates oppor-tunities for youth

Sharing the wealth of Turtle Island includes the resources above as well as below and is premised on respect for the health of our lands Put simply if we follow the Treaties both industry and First Nations share in economic gains today and for future generations in a way that main-tains the health of our lands

The right partner under-stands that the economic fortunes of mines and First Nations are inter-

twined Development is not a zero-sum game Either we both win or no one wins

The largest obstacle to the relationship between the mining community and First Nations has been bad politics

As every mining company knows accessing our lands can only be done within the context of Treaties Every proponent knows it is the duty of the Crown to consult and accommodate

First Nations will always assert their rights and title and when the Crown looks the other way both proponents and First Nations enter a mutually harmful cycle of litigation That means when politicians get it wrong we all lose

This election should be an opportunity to figure out how we do better Indian and Northern Affairs Canada is looking to create new consultation guidelines Natural Resources Canada is tasked with implementing new transparency requirements on payments to First Nations by mining companies

The Mineral Exploration Tax Credit will be up for renewal again next year and some political pundits have said the 2015 credit reforms are against First Nations best interests

We need the right people in Ottawa to bring these pieces where we need them to be

For First Nations economic development and respect for the environment must go hand in hand Opportunities that

respect the environment create opportunities for our youth honour our Treaties and acknowledge the wisdom of our Elders will be embraced in most circumstances

Itrsquos difficult to meet those criteria when govern-ment refuses to consult punishes First Nations with punitive cut backs under the guise of transparency or ignores environmental concerns

If we fail to get it right this election we may lose our opportunity to move forward together and achieve mutual benefitThe stakes are high The mineral sector may be in a slump but the opportunities are endless

We know the right industry players can be good part-ners More than 300 Impact Benefit Agreements have been signed between mining companies and First Nations

since 1974 We must continue following best practices and throw out ideas that stand opposed to our Treaty relationships

The opportunities are rich Letrsquos not allow bad policy and poor government practices to hold opportunities back CMJ

By Ontario Regional Chief Isadore Day Wiindawtegowinini

Whatrsquos good for First Nationsis good for business too

FIRST NATIONS

6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

First Nationsindd 6 2015-08-25 317 PM

CGIS has experience working with The Worlds Best Valves controls and

automation since 1980 See how the right valve can improve

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CGIS has a commitment to understanding the application and ensuring that our customers always get the right valve We take the time to really understand where the valves are being installed and what it needs to do well before a dollar is spent

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

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F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

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Em

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Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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201

5 W

eir

Min

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

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ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 7: Cmj de 09012015

CGIS has experience working with The Worlds Best Valves controls and

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T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

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Em

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Arc

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Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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EIR

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WEI

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arks

and

or

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ed tr

adem

arks

of W

eir

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
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Page 8: Cmj de 09012015

T he Gahcho Kueacute Project in the Northwest Territories is the worldrsquos largest and richest new diamond mine In joint venture with De Beers Mountain Province Diamonds is developing the mine which is progress-

ing according to plan and budget and is on track for first produc-tion in H2 2016 It is expected to produce an average of 45 mil-lion carats a year over a 12 year mine life and has the potential to become one of Canadarsquos major high-grade and long-lived dia-mond mines Financial close was reached on April 7 2015 and was backed by a syndicate of Canadian and international lenders

The Diamond Policy FrameworkGahcho Kueacute is subject to the NWT governmentrsquos Diamond Policy Framework which aims to develop and support the local secondary diamond industry For example the government of the NWT has committed to the certification of NWT diamonds as being mined cut and polished in the NWT to verify the origin of the diamond (one of the popular tools used to signify the origin of the diamond as ldquoconflict freerdquo is to laser engrave the diamond with a microscopic-sized polar bear logo) The Framework was first adopted in 1999 and most recently updated in 2010

To the extent that one of the objectives of the Framework is to grow and diversify the NWT secondary diamond industry the NWT government has taken steps to ensure that local man-ufacturers have a steady supply of incoming rough stones Each developer of a project in the NWT must sign an agreement with the government of the NWT undertaking to sell a percentage of its rough stones to local manufacturers After signing the agree-ment with the NWT developers then negotiate a commercial agreement directly with the approved manufacturer of their choosing and that has been approved by the Minister of Industry Tourism and Investment The Minister may monitor audit and

inspect the manufacturer to ensure that the sorting and polishing is actually done within the territory by companies that employ local residents

The premise seems simple enough however the issue is com-plicated by the fact that currently there is a very limited number of diamond polishers in the territory

The OutcomeIn 2007 Mountain Province Diamonds Inc signed such an agree-ment with the NWT government Under the agreement Mountain Province agreed to operate a sorting facility in the NWT and ldquoestab-lish a mechanismrdquo for the sale of a percentage of its rough diamonds from Gahcho Kueacute to the local secondary industry

At the time the agreement was signed the diamond manufac-turing market in the NWT was burgeoning marked by the opening of several new sorting and polishing facilities However by 2015 many of those facilities had closed as a result of deteri-orating market conditions

Agreements under the Framework place developers in a chal-lenging situation if the market changes drastically Where there is only one provider developersrsquo ability to negotiate the terms of the polishing agreement may be weakened due to the lack of market dynamics Where there are no providers developers risk breaching their agreement with the government altogether

At its inception lenders and developers surely viewed the Diamond Policy Framework as a reasonable and desirable initia-tive However due to an unforeseen shift in the market and the commercial reality that such arrangements have to be bankable the Framework has resulted in some additional considerations for both lenders and developers

Canadian mining companies need to be mindful of these limitations and hurdles when entering into these kind of agree-ments think through all of the contingencies and prepare rea-sonable mitigation strategies while drafting the initial agree-ments at all times understand and be mindful of the rigorous scrutiny lenders will bring to the project and make sure you have answers for all of the important commercial questions

All stakeholders need to work together throughout the financing to carefully consider the risk profile of these issues and properly allocate the risks to the party who is most capable of managing them in the long term CMJ

GEOFFREY GILBERT is a partner at Norton Rose Fulbright Ottawa

8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

LAW

By Geoffrey Gilbert

Diamonds NWT and howthe Polar Bear got in there

ONE OF THE POPULAR TOOLS USED TO SIGNIFY THE ORIGIN OF THE DIAMOND AS ldquoCONFLICT FREErdquo IS TO LASER ENGRAVE THE DIAMOND WITH A MICROSCOPIC-SIZED POLAR BEAR LOGO

Lawindd 8 2015-08-25 1138 AM

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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By specializing in shovels instead of lots of different equipment Hitachi does

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and never compromise on quality and design ThaTrsquos all

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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arks

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arks

of W

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neer

ing

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vice

s Lt

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EHO

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and

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egis

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

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The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

10

0

1980 1990 2000 2010

20

30

40

50

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  • 001
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Page 9: Cmj de 09012015

5002265A AEL Print Ad Canadian Mining fapdf 1 8715 307 PM

AELAdindd 9 2015-08-21 1027 AM

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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By specializing in shovels instead of lots of different equipment Hitachi does

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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arks

of W

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neer

ing

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vice

s Lt

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EHO

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egis

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

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600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

10

0

1980 1990 2000 2010

20

30

40

50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
  • 008
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  • 010
  • 011
  • 012-016
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Page 10: Cmj de 09012015

F ree Prior and Informed Consent is a concept that is increasingly important in the context of consultation with Indigenous communities and therefore for CSR management wherever mining operations affect

Indigenous Peoples In the CSR Strategy for the Extractive Sector (CSR Strategy) the Canadian Government endorsed the IFC Performance Standards on Environmental and Social Sustainability (IFC Performance Standards) as a key benchmark for performance by Canadian companies operating abroad The original 2009 CSR Strategy specifically endorsed the 2006 IFC Performance Standards which did not contain the concept of Free Prior and Informed Consent (FPIC) The ldquoenhancedrdquo CSR Strategy announced in 2014 contemplated endorsement of the IFC Performance Standards version released in 2012 which includes the concept of FPIC in Performance Standard 7 (PS 7) As such the parameters of FPIC in the context of PS 7 is a use-ful guide to the expectations surrounding FPIC for Canadian companies operating abroad

Generally PS 7 addresses the potential for adverse social impacts that a private sector company may have on the Indigenous Peoples and populations residing on the lands that the company intends or is operating on or nearby Indigenous Peoples are deemed to be lsquouniquelyrsquo vulnerable to the extent they have been historically marginalized peoples who suffer from a lack of political representation and access from decision-making processes that have directly or indirectly affected them As a minority group they are distinct ldquodue to the linkage between their cultural identity and the lands on which they live and resources on which they dependrdquo

The objectives of PS 7 are to ensure the preservation of Indigenous culture and way of life the avoidance of adverse impacts to Indigenous communities where possible the com-pensation of Indigenous Peoples who have been adversely affect-ed by the companyrsquos project(s) and the promotion of sustainable relationships with the Indigenous Peoples that are directly or indirectly affected by the companyrsquos project

PS 7 encompasses a wide range of Indigenous communities given the complexity of defining Indigenous Peoples PS 7 applies to Indigenous Peoples that are on their ancestral lands as well as those who are not living on the land but have maintained ties with it In addition to those Indigenous Peoples who have been forcibly displaced from their ancestral lands In order to determine if a group or community qualifies to be identified as an Indigenous People the company can analyze applicable

national law engage in archivist and ethnographic research and obtain the assistance of the relevant Indigenous groups In assess-ing which if any Indigenous communities are to be affected by a project a company applying PS 7 must first determine if Indigenous communities exist in the projectrsquos zone of influence

Like all of the IFC Performance Standards PS 7 sets a perfor-mance baseline for CSR performance that may interrelate and overlap with domestic and international legal obligations but which must be met especially where the rights of Indigenous Peoples are not safeguarded by States or legal systems PS 7 itself draws from international legal instruments relating to the rights of Indigenous Peoples In 1989 the International Labour Organization (ILO) promulgated the Indigenous and Tribal Peoples Convention (commonly known as ILO Convention No169 The legal effects of ILO Convention 169 have been limited as it is only legally binding on the States that have ratified it ndash to date it has only been ratified by 22 countries The emphasis of the Convention is on recognizing Indigenous Peoplesrsquo rights over their ldquoown social cultural and economic developmentrdquo These concepts have been adopted by the Inter-American Court of Human Rights in several decisions identifying consultation obligations on mem-ber States to consult with Indigenous communities affected by major development projects

While there is no universally accepted definition of FPIC in the context of PS 7 it contemplates that consultation is con-ducted prior to the development activity through good faith negotiations between the project proponent or State and the affected Indigenous communities that will ideally lead to an agreement between the two sides FPIC is widely understood as a process that permits communities of Indigenous Peoples to define a collective position in response to a project while recog-nizing the fact that different and diverging viewpoints may exist within those communities This does not in the context of PS 7 necessitate the unanimous support of the members of Indigenous communities and many would argue that it also does not provide a ldquovetordquo right over development That being so PS 7 does not provide a singular definition of FPIC and the concept is highly contentious Despite the challenges in implementation in light of the CSR Strategy and the pervasive role of the IFC Performance Standards including in financing decision making it will serve CSR and mining managers well to become familiar with the topic and how it could relate to their projects CMJ

MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office

By Michael Torrance

International CSR standards and free prior and informed consent

10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

CSR amp MINING

CSRindd 10 2015-08-26 929 AM

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

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NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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arks

of W

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
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  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
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Page 11: Cmj de 09012015

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FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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arks

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arks

of W

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neer

ing

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vice

s Lt

d G

EHO

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and

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egis

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

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Year

10

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1980 1990 2000 2010

20

30

40

50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
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  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
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Page 12: Cmj de 09012015

FROM GROUND BREAKING TO A GIANT MINE IN JUST FIVE YEARSHistoric gold mine continues to growBy Russell Noble

GOLD in CANADAYOUNG-DAVIDSON MINE

SO MANYCHANGES

Itrsquos hard to believe that itrsquos been more than five years since Michael Gravelle Ontariorsquos Minister of Northern Development and Mines broke ground at the Young-Davidson mine in Matachewan to mark the start of

renewed construction on what today is one of the countryrsquos larger underground gold mines

In fact since that ceremonial shovel went into the ground on September 10 2010 the site has been transformed from a local landmark containing a few remnants from of the original Young-DavidsonMatachewan Consolidated mine (mined from the mid 1930s to the mid 1950s) to now where a small city of administrative buildings head frame mill an open pit tailings ponds and a network of roadways criss-cross the 11000-acre property

Located approximately 60km west of Kirkland Lake on Highway 66 the mine is centrally located between Timmins Kirkland Lake North Bay and Sudbury and for the past five years Alamos Gold Inc has been building on and extensively expanding the underground workings at the 85-year-old site

To say that Alamos has taken its work seriously is an under-statement because as the minersquos General Manager Luc Guimond explains ldquoThe Young-Davidson project was a challenge from the

start because it involved the implementation of new technologies with original designs and underground workings and anytime you combine the two the old with new therersquos always a chance the two donrsquot get alongrdquo

By that Guimond explains is that anytime you pick up where someone else left off especially underground involving historic shafts and stopes therersquos always a question about stability and especially the safety for the miners entering the existing mine

In the case of the Young-Davidson Mine however Guimond said the teams of miners from his company plus those from both of the main contractors Dumas and Cementation worked extremely carefully when expanding the mine and today he proudly oversees the accident-free and productive mine

As mentioned earlier one of the main contractors involved with the Young-Davidson mine is Dumas a company that Guimond says was involved long before the official lsquogo-aheadrsquo was given to put the mine back into operation

In fact Dumas has been onsite continuously since 2006 when it was hired by Northgate Minerals (owners of the mine at the time) to dewater and rehabilitate the minersquos historic shaft and replace the shaft bearings as well as replace all timber sets with steel from surface to the 700-m level

12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Early view of the barren mine site before structures started to change the landscape near Matachewan

Yonge Davidsonindd 12 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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res

erve

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arks

and

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arks

of W

eir

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neer

ing

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vice

s Lt

d G

EHO

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and

or r

egis

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

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600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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Page 13: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 13

Aerial view of the Young-Davidson gold mine shows the complexity of the project and detail (inset) of the various components The open pit in the foreground was closed in June 2014

Pho

to

Em

ma

Arc

her

Pho

togr

aphy

20

13

Yonge Davidsonindd 13 2015-08-25 320 PM

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

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NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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EIR

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WEI

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arks

and

or

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ed tr

adem

arks

of W

eir

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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Page 14: Cmj de 09012015

Dumas was also responsible for completing the installation of services the hoist installation and rehabilitation of the existing head frame

During shaft rehabilitation Dumas also undertook a concur-rent lateral development program that included portal construc-tion ventilation raises and associated mine construction

One of those construction phases involves an ore pass and ramp work that has involved more than 30000m of ramp and lateral development to ore zones and ventilation drifts involving the excavation of approximately 7200m per year

Perhaps one of the more ambitious and innovative mining techniques used during the construction of the Young-Davidson mine was the raise-boring of a 55-m-diameter production shaft

Cementation also a long-time contractor at Young-Davidson having been on site since 2010 was responsible for the shaftrsquos engineering and design plus underground development and construction

Dennis Martin Raise Boring Manager Cementation explains in more detail by saying ldquoThe technical challenge for raise bor-ing Alamosrsquos Young-Davidson production hoisting shaft was drilling the pilot hole straight and reaming it out to 55m in diameter

ldquoThe vertical tolerance used for the engineering design was 300mm over the entire length of the shaft barrel and complet-ed at less than 100mm The final shaft diameter of 55m was completed without an in-hole hardware failure medical aid or lost timerdquo

14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

Surface hoist of raise-boring installation

A stockpile of drill pipes ready for the raise-boring application

A look at the cutting head used in the raise-boring of the shaft

Yonge Davidsonindd 14 2015-08-25 320 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

v A

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erve

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arks

and

or

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ed tr

adem

arks

of W

eir

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vice

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and

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

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Canada 1-800-892-8293 bull USA 1-800-748-2375

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Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 15: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 15

Innovative Design-Build SolutionsSince 2010 Cementation has been part of the Young-Davidson mine development team carrying out shaft work underground development engineering and construction This work has included the design and construction of the borehole hoisting facility an innovative approach that helped bring underground production in on schedule and significantly reduced the capital of a traditional shaft hoisting system Another innovative design-build project by Cementation

wwwcementationcom

GOLD WINNER

He added ldquoThis technical raise-boring challenge was accom-plished due to three main elements and heavy capital investment by Cementation

1 Tooling to drill vertical pilot holes with high accuracy2 Large diameter raise drills rods bottom hole assemblies

reamers and3 Very well-trained personnelrdquo Martin further explains that a detailed risk assessment was

completed prior to starting work and a methodology put in place for the main work activities

Herersquos a look at the methodology used by the companyPre-mobilization Prior to the equipment arriving

Cementation had a representative on site from time to time to ensure the site preparations and requirements where on schedule

Site Preparation The drilling site raise drill foundation underground reamer connecting site and site services required for the raise boring operation of the project was completed by the Client as per Cementation drawings

Mobilization First truck load arrived on site one day after the last of the clientrsquos site specific workforce orientation require-ments where completed Off-loading the majority of the drilling equipment took place prior to the drill set up but continued during drill set up It required a forklift capable of 5+ tonne and

Underground crews have been working steadily to expand the minersquos stopes and shafts for almost 10 years

Yonge Davidsonindd 15 2015-08-25 320 PM

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

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the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

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Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

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Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

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Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 16: Cmj de 09012015

a 100+ tonne crane working on day shift onlySetting Up Took approximately 10 days was done

on day shift only until the earliest opportunity 247 activity could take place

Drilling the Pilot Hole This was a critical activity as mentioned above and strict operational procedures were in place Time was not a factor accuracy was and the results exceeded design tolerance by a wide margin

Breakthrough Area The breakthrough area of the pilot hole is also the shaft bottom and this area was completed prior to completing the pilot hole Shotcrete was applied to the back to keep the brow from peeling and provide a safe working area at the brow

Reamer Installation The reamer assembly had six major components that took two days to assemble and attach to the drill string

Reaming the Raise The reaming averaged 50 mday and mucking the cuttings was completed with a remote loader

Reamer Removal Tear Down It took 5 days to remove the raise drilling equipment from the top of the shaft and pull the reamer out the top with a crane

In addition to Cementationrsquos raise-bored shaft the underground is also accessed via a second shaft and main ramp The raise boring of the Northgate shaft was completed down to the mid-shaft loading pocket in 2013 which accesses the first eight years of mine production

Luc Guimond explains that work continues on developing vertical access in the underground mine below that of the mid-shaft loading pocket to an even-tual depth of 1500 metres The existing shaft is expect-ed to reach its ultimate depth this year to provide for the hoisting of personnel materials ore and waste

The mine operates scooptrams to load haul and transfer stope production to the ore-pass system from where it is hoisted to the surface by 18-tonne skips

Therersquos also the ramp that is being extended to the bottom of the mine from the existing exploration camp currently at the 900-m level

Once in the mill both underground ore and stock-piled open-pit (closed in June 2014) ore is processed through an 8000 tpd single-stage semi-autogenous grinding circuit with a grinding circuit followed by flotation

Guimond explains that the flotation concentrate is further ground and leached in a conventional carbon-in-leach system with flotation tailings also being leached in a carbon-in-leach circuit

The gold is recovered from the carbon followed by electro-winning and pouring dore bars

First gold was poured at the Young-Davidson Mine in April 2012 CMJ

16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAYOUNG-DAVIDSON MINE

A picturesque view of the Yound-Davidson mine by Alamos Goldrsquos Nancy Duquet-Harvey as it looks today

First gold was poured in April 2012

Yonge Davidsonindd 16 2015-08-25 320 PM

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

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NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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res

erve

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WEI

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arks

of W

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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MONTT GROUP SpAChilean Mining Attorneys

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

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420-

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600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

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1980 1990 2000 2010

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40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
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Page 17: Cmj de 09012015

DumasAdindd 17 2015-08-21 1028 AM

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

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NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

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Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

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ethe

rlan

ds b

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arks

of W

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
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  • 010
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Page 18: Cmj de 09012015

18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

Gold properties continue to pay higher dividendsStaff Report

IN ASSETSGAINSHOTTER

Gold being poured at La Ronge Agnico Eaglesrsquo flagship mine in Quebec

Agnico-Eagleindd 18 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

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Coal Rights For Sale

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Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

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David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

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ERS

IND

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AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
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Page 19: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 19

Many Canadian mining companies have earned national and international recognition for their knowledge and understanding of what it takes to be a successful and innovative miner and Agnico-

Eagle Mines Limited of Toronto is certainly one of themIn fact since 1957 when the company became known as

ldquoAgnicordquo a name cleverly derived from the periodic table of elements using the symbols for silver (Ag) nickel (Ni) and cobalt (C0) the companyrsquos early focus until the later merger with Eagle Mines Ltd a successful gold exploration company the now-known Agnico-Eagle has become a leader in mineral exploration and development

With operations in Canada Finland and Mexico Agnico-Eagle is a company with international credentials and it proudly ranks 13th in Canadian Mining Journalrsquos list of Canadarsquos Top 40 but perhaps most impressive is that it ranked first in Canada with an asset change of +3311 from 2013 to 2014

And herersquos a look at five Canadian projects that have helped the company reach this envious position

CANADIAN MALARTIC (50 ownership)The Canadian Malartic operation is one of the largest operating gold mines in Canada The large open-pit mine and plant locat-ed in the Abitibi region of northwestern Quebec began com-mercial production in May 2011 The operation was built by Osisko Mining Corp which was jointly acquired in June 2014 by Agnico Eagle Mines Limited (50) and Yamana Gold Corporation (50)

The Canadian Malartic mine is located in the heart of the prolific Abitibi Gold Belt in Quebec south of the town of Malartic approximately 25 kilometres west of the City of Val-drsquoOr It only took six years from the initiation of exploration drilling in 2005 for the then-owner Osisko Mining Corporation (ldquoOsiskordquo) to complete the mine development In August 2009 Osisko received government approval to begin construction of the mine The first gold pour was in April 2011 and the start of commercial production in May 2011 The total capital cost to that time was approximately C$11 billion

The mine poured its millionth ounce of gold in November 2013 The mine is currently Canadarsquos largest operating gold mine and is developing into one of the worldrsquos largest pure gold producers The 55000-tonnesday open-pit mine and plant produced 535470 ounces of gold as well as 533315 ounces silver (on a 100 basis) in 2014 It is expected to produce approximately 280000 ounces of gold in 2015 to Agnico Eaglersquos account with a mine life expected to last through 2028 The mine has 433 million ounces of gold in proven and proba-ble reserves (127 million tonnes grading 106 grams of gold per tonne) on a 50 basis

Source 50 basis Canadian Malartic December 31 2014 Reserves and Resources

GOLD in CANADAAGNICO-EAGLE MINES LTD

Agnico-Eagleindd 19 2015-08-25 323 PM

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

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ethe

rlan

ds b

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erve

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arks

of W

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

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1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

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600

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Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 010
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Page 20: Cmj de 09012015

Mining productivity improves North Zone mining rate increases in Q2 2015

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the second quarter of 2015 totalled 68441 ounces gold at a total cash cost per ounce of $609 on a by-product basis production in this period included 69000 ounces of silver

s During the quarter on 100 basis the mill processed 4614000 tonnes of ore (50705 tonnesday) Minesite costs per tonne were in line with guidance at approximately C$20 (C$23 including royalties)

s The average stripping ratio in the second quarter was 264 to 10

s Agnico Eaglersquos 50 share of attributable production at the Canadian Malartic mine during the first six months of 2015 totalled 136334 ounces gold at a total cash cost per ounce of $621 on a by-product basis production in this period included 141000 ounces of silver

s During the six-month period on 100 basis the mill pro-cessed 9294000 tonnes of ore (51343 tonnesday) Minesite costs per tonne were approximately C$20 (C$23 including royalties)

s Discussions took place in the second quarter with permit-ting authorities about improving the efficiency and environmen-tal performance of the existing mobile crusher used for pre-crush-ing An application for a Certificate of Authorization is being prepared for possible submission later this year

OutlookMill throughput levels at Canadian Malartic are forecast to be approximately 53000 tonnesday through 2016 (on a 100 basis) The Partnership continues to work on several mining and milling initiatives to optimize the operations Permitting activi-ties for the Barnat Extension and deviation of Highway 117 continue the process remains on schedule for receipt of the necessary permits in November 2016 Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted Odyssey North is in part hosted on the Malartic CHL property in which the Partnership increased its interest to 100 in March 2015

GOLDEXThe Goldex mine is part of the chain of operations and proper-ties that Agnico Eagle owns in the Abitibi region of Quebec

Underground mining from the M and E satellite zones and processing in the mill started in September 2013 The Goldex operation achieved commercial production in October 2013

The Goldex underground mine and processing plant are located in the city of Val-drsquoOr Quebec some 60 kilometres east of the LaRonde mine This proximity allows for operating syn-ergies between the two sites Commercial production from the M and E zones was achieved in October 2013

Goldex has proven and probable reserves of 03 million ounc-es of gold (71 million tonnes grading 15 gramstonne gold) as of December 31 2014

The current reserves which are in the M Mx and E zones are estimated to support an underground mine over a three-year life with average annual production of approximately 95000 ounces gold using long-hole stoping methods with paste back-fill Based on a positive internal technical study in July 2015 the company approved the Goldex Deep 1 project which is the development of the Dx and D zones between 850 and 1200 metres depth for production beginning in 2018 using the same mining methods

Goldex is expected to produce 100000 ounces of gold in 2015 and to average approximately 95000 ounces of gold annu-ally from 2016 through 2017 from the M and E zones The mine is expected to average more than 100000 ounces of gold production from 2018 through 2024 from the Dx and D zones

Source Goldex December 31 2014 Reserves and Resources

Deep 1 project approved for mining production expected to extend through 2024

s In the second quarter of 2015 payable gold production totalled 26462 ounces at a total cash cost per ounce of $633 on a by-product basis

s During the quarter the mill processed 604000 tonnes of ore (6640 tonnesday) with mine-site costs at C$34 per tonne

s In the first six months of 2015 payable gold production totalled 55712 ounces at a total cash cost per ounce of $585 on a by-product basis

s During the six-month period the mill processed 1171000 tonnes of ore (6468 tonnesday) with mine-site costs at C$34 per tonne

s Agnico Eagle approved the Goldex Deep 1 project in July 2015 to develop the Dx and D zones for production Deep 1

20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

GOLD in CANADAAGNICO-EAGLE MINES LTD

Conveyway at Canadian Malartic

Ore being stored under protective cover at Goldex

Agnico-Eagleindd 20 2015-08-25 323 PM

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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ht copy

201

5 W

eir

Min

eral

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ethe

rlan

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arks

of W

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 21: Cmj de 09012015

underground development and resource conversion drilling will be accelerated in the second half of the year

s Mining operations at GEZ remain suspended

OutlookThe Deep 1 project was approved based on a positive internal technical study focused on mining the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1200 metres (Level 120) adding seven years to the mine life to 2024 The company plans to develop Deep 1 from the current Goldex infrastructure with existing equipment and personnel The min-ing rate for Deep 1 will be approximately 6000 tonnesday producing an average of more than 100000 ounces of gold per year The plant would have additional capacity to process up to 2000 tonnesday from other sources such as the nearby Akasaba West project No changes are anticipated in the processing plant tailing deposition at the Manitou site is expected to continue The Deep 1 project development capital is forecast at approxi-mately $135 to $140 million including the cost of installing an automated conveyor system and sustaining capital is estimated at $60 to $70 million

The advancement of the Deep 1 project unlocks significant upside potential for additional mineral resource conversion in Deep 1 potential for mining at Deep 2 (below Level 120) poten-tial to develop the South Zone from the Deep 1 infrastructure and the potential development of the Akasaba West deposit

LAPAThe Lapa underground mine is located near the LaRonde oper-ation It is Agnico Eaglersquos highest grade mine with gold grades more than twice as rich as the companyrsquos average

The Lapa underground mine is located in the Abitibi region of northwest Quebec just 11 kilometres east of Agnico Eaglersquos LaRonde mine and 49 kilometres west of the Goldex property Lapa has proven and probable reserves containing approximately 02 million ounces of gold (09 million tonnes grading 58 gtonne gold) Lapa is expected to pour 75000 ounces of gold in 2015 and 50000 ounces of gold in 2016 with a mine life end-ing in 2016 Additional near-term exploration results could extend the mine life

Source Lapa December 31 2014 Reserves and Resources

Zulapa Z7 zone continues to yield higher grades and recoveriess In the second quarter of 2015 payable gold production

totalled 19450 ounces at a total cash cost per ounce of $678 on a by-product basis

s During the quarter the mill processed 126000 tonnes of ore (1387 tonnesday) with mine-site costs at C$126 per tonne

s In the first six months of 2015 payable gold production totalled 45370 ounces at a total cash cost per ounce of $615 on a by-product basis

s During the six-month period the mill processed 278000 tonnes of ore (1538 tonnesday) with mine-site costs at C$122 per tonne

OutlookAt Lapa 2015 is the last full year of production based on the current life of mine plan In 2016 production is expected to decline from the current level Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora prop-erty (50 Agnico Eagle) could potentially extend the mine life

LARONDELaRonde is Agnico Eaglersquos flagship mine and it is located in the Abitibi region of northwestern Quebec LaRonde has produced 46 million ounces of gold since it opened in 1988 and current-ly has a mine life lasting through to 2024 The 7200-tonne-per-day mine and plant has produced 46 million ounces of gold as well as valuable by-products The mine still has 34 million ounces of gold in proven and probable reserves (21 million tonnes grading 52 grams of gold per tonne)

The deep extension of the LaRonde mine achieved commer-cial production in November 2011 and is the focus of mining activities going forward LaRonde is expected to increase gold production rates anticipated to exceed 300000 ounces per year by mid-2016 and continuing over the life of mine reflecting the higher gold grades expected at depth

Ore is processed at the LaRonde mineral processing complex which includes copper and zinc flotation as well as precious metals recovery and refining The processing plant produces doreacute bars containing gold and silver as well as zinc and copper con-centrates that also carry valuable gold and silver credits

Source LaRonde December 31 2014 Reserves and Resources

Gold production steadily increasing commissioning of coarse ore conveyor on track for late Q3 2015

s In the second quarter of 2015 payable gold production totalled 64007 ounces at a total cash cost per ounce of $613 on a by-product basis

s During the quarter LaRonde also produced 201000 ounces of silver 827 tonnes of zinc and 1133 tonnes of copper

s During the quarter the mill processed 568000 tonnes of ore (6242 tonnesday) with mine-site costs at C$99 per tonne

s In the first six months of 2015 payable gold production totalled 122900 ounces at a total cash cost per ounce of $656 on a by-product basis

s During the six-month period LaRonde also produced 398000 ounces of silver 1763 tonnes of zinc and 2300 tonnes of copper

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 21

Aerial view of Lapa Mine operations

Agnico-Eagleindd 21 2015-08-25 323 PM

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

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ethe

rlan

ds b

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erve

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arks

of W

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ing

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

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30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

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1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

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The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

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Year

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50

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Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
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  • 007
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Page 22: Cmj de 09012015

s During the six-month period the mill processed 1126000 tonnes of ore (6223 tonnesday) with mine-site costs at C$101 per tonne

s In the second quarter work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015 These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine

OutlookStudies continue to assess the potential to extend the reserve base and carry out mining activities below the present level (311 level 31 kilometres depth) to the 371 level (a depth of 37 kilometres below surface) Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels Additional holes are being drilled to evaluate the extent of the mineraliza-tion down to the 371 level

MEADOWBANKThe Meadowbank open-pit gold mine in the Nunavut Territory of Canada is Agnico Eaglersquos first Low Arctic mine and largest gold producer

The Meadowbank mine is located in the Kivalliq region of Nunavut about 2600 kilometres northwest of Toronto It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake the nearest community Meadowbank was Agnico Eaglersquos largest gold producer in 2014 and has 12 mil-lion ounces of gold in proven and probable reserves (12 million tonnes at 308 gt) The mine is located on a very large property that has exploration potential for gold Meadowbank depends on the annual warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment An all-weather road links Baker Lake to the site An on-site airstrip is used for shipping food and goods and for trans-porting employees who work on a fly-in fly-out basis

22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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d e P e n d a B L e P r o J e c t d e v e L o P M e n t

GOLD in CANADAAGNICO-EAGLE MINES LTD

Drilling for gold at the face at LaRonge

Agnico-Eagleindd 22 2015-08-25 323 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Min

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

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Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

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Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

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David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
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Page 23: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 23

Mine commissioning and first gold production from the Portage open pit began in early 2010 The mine is expected to produce 400000 ounces of gold in 2015

Source Meadowbank December 31 2014 Reserves and Resources

Mine life extended as Vault pit extension approveds In the second quarter of 2015 payable gold production

totalled 91276 ounces at a total cash cost per ounce of $688 on a by-product basis The mine also produced 57000 ounces of silver in the quarter

s During the quarter the mill processed 1019000

tonnes of ore (11199 tonnesday) with mine-site costs at C$74 per tonne

s In the first six months of 2015 payable gold production totalled 179799 ounces at a total cash cost per ounce of $672 on a by-product basis The mine also produced 153000 ounces of silver in the period

s During the six-month period the mill processed 2010000 tonnes of ore (11103 tonnesday) with mine-site costs at C$73 per tonne

OutlookIn 2015 approximately 55 of the production is expected to occur in the second half of the year the expected production increases would be due to higher grades being mined from the Portage E3 pit

The company announced in July 2015 that it would proceed with the expansion of the Vault pit With the expansion the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than origi-nally forecast) In addition a major drill program is planned at Amaruq in 2015 to expand the initial inferred resource base with the goal of potentially developing the deposit as a satellite opera-tion to Meadowbank The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of produc-tion at a satellite operation at Amaruq (not yet approved for construction) CMJ

OUR STRENGTH IS PEOPLE

NOW HIRING FOR POSITIONS INEnvironmentGeologyMetallurgy amp ProcessingMining EngineeringMine Improvement amp SupportOperations amp Maintenance StrategyProject DevelopmentStudy Management

Corporate AffairsCorporate Social ResponsibilityFinanceHuman ResourcesLegal amp EthicsOperational Excellence Safety amp HealthSupply Chain

NYSE GG | TSX Ggoldcorpcomcareers

Heavy machines work in tandem at Portage open pit

Agnico-Eagleindd 23 2015-08-25 323 PM

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

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GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

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the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

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Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

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David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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TECHNOLOGY

A website that gives full details

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SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

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Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 24: Cmj de 09012015

24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

W here therersquos smoke therersquos fire is exactly what Claude Resources didnrsquot want to happen to its Seabee Gold Mine in northern Saskatchewan when smoke and heavy ash from nearby forest

fires recently forced the company to suspend production for the safety of its workers

In fact with less than 10km separating the mine from the leading edge of one of the 112 fires (including 25 that were out of control) that devastated more than 600000 hectares of vege-tation in northern Saskatchewan the company had no problem making the decision to evacuate and temporarily suspend under-ground mining at the mine site

As company President and CEO Brian Skanderbeg said ldquoOur number one priority is the safety and well being of our

employees and as a precautionary measure during the recent fires we moved all non-essential personnel from the site to help ensure that nobody was in dangerrdquo

Production at the mill however was not affected because the company had a stockpile of approximately 10000 tonnes of ore available on surface representing about 12 days worth of production

Now with the fires out and everyone back at work the mine is up and running again To be more precise the mine(s) are back in operation because the Seabee gold operation actually consists of two producing mines the Seabee Gold Mine (since 1991) and the Santoy Gold Mine Complex (since January 2011)

The Seabee Gold operation is located in the La Ronge Mining District at the north end of Laonil Lake approximately

BEFOREPROFITS

Gold miner suspends operations to protect workers from fires By Russell Noble

PEOPLE

Claude Resourcesindd 24 2015-08-25 324 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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ht copy

201

5 W

eir

Min

eral

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ethe

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arks

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

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wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
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Page 25: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 25

125km northeast of the Town of La Ronge and about 150km northwest of Flin Flon Manitoba

Access to the minesite is by fixed-wing aircraft from La Ronge or Flin Flon to an airstrip located on the property Heavy equip-ment and other bulky mine supplies are trucked to the site on a 60-km winter road (typically used from January to March) from Brabant Lake on Highway 102

There are approximately 260 people working at the mineThe companyrsquos Santoy Gold property located about

14km east of the Seabee Mine is a 4566-ha site that is con-nected by an all-weather road along with a power line to the main mine

It consists of two deposits Santoy 8 and Santoy Gap During the first quarter of 2011 the Santoy 8 deposit reached commer-

GOLD in CANADACLAUDE RESOURCES

cial production and production from the Santoy Gap began during the second quarter of 2014

Currently Claude Resources is mining from the Stantoy Gap deposit and the Seabee Gold Mine is expected to be the main contributor of total production at the Seabee Gold Operation for years to come

Brian Skanderbeg said the Stantoy Gap development was ahead of schedule with long-hole production by milling 279597 tonnes of ore (from Seabee and Gap)in 2014 at a head grade of 732 gt and a recovery 962 per cent Since May 2014 it has milled 124188 tonnes at a head grade of 844 gt

From this Claude Resources produced 62984 ounces of gold in 2014 and sold 62772 ounces an increase of 44 and 40 per cent respectively from the previous year

In keeping with these encouraging results Skanderbeg adds that first half results in 2015 continued with 142030 tonnes milled at a head grade of 949 gt and a recovery of 962 per cent

Gold produced in the first half was 41086 ounces an increase of 39 per cent over the same period in 2014 and Claude Resources sold 37860 ounces an increase of 33 per cent more than in 2014

When asked what makes the Stantoy Gap so special Skanderbeg says the system remains open at depth with 2000 ounces per vertical metre (Seabee 1000 ouncevertical metre) and a higher reserve grade with opportunity to increase plus therersquos a decreased production risk with the addition of multiple long-hole mining fronts

Also he said therersquos the opportunity to displace low-margin ounces with higher-margin ounces and optimize the mine plan for improved cash flow

To keep its prospects for future growth alive Claude Resources continues with a significant underground drilling program of approximately 65000 metres this year and with resources of more than 127 million ounces of gold (NI 43-101) 1000 metres of shafts at Seabee tailing facilities permitted for six years and a mill capable of producing 900 tonnes per day the company is well positioned to be one of Canadarsquos more notewor-thy gold miners for years to come CMJ

PROFITSGold miner suspends operations to protect workers from fires By Russell Noble

Workersrsquo safety was top priority during the recent fires near Claude Resourcesrsquo Seabee Mine in Northern Saskatchewan Because of the proximity of the fires to the mine all underground operations were suspended

Aerial view of the Seabee Mine shows the forests surrounding the mine

Claude Resourcesindd 25 2015-08-25 324 PM

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

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ethe

rlan

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arks

of W

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

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Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 26: Cmj de 09012015

26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

PUMPS

DEWATERINGANDPUMPING

By Russell Noble

A series of high-pressure pumps work side-by-side to provide water to remote sites

Pumps1indd 26 2015-08-25 1146 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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arks

and

or

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ed tr

adem

arks

of W

eir

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 27: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 27

A s every miner and mine owner knows there are a multitude of dangers and other challenges associ-ated with their work especially for those work-ing underground

Explosions cave-ins fires and flooding are just a few of the potential dangers that can quickly turn a relatively safe working environment into a disaster both in terms of human life and to Mother Nature herself

Thankfully most of todayrsquos mining operations are well equipped to handle the most severe of situations and one com-pany that stands out when it comes to the safe control of water is Atlas Dewatering Corporation

With almost 70 years in the pumping dewatering and envi-ronmental groundwatersurface water industry the Concord (Toronto) based company specializes in full turn-key services to the mining industry including pump rentals sales and service

Stephan Kokeza Northern Territory Manager for Thunder Bay Timmins says the company specializes in pumping and dewatering systems With specific reference to mining Kokeza says ldquoOne of our goals is to assist in bringing environmental liabilities under control by offering local supply and expertise coupled with emergency response plans for things like spring run-off or tailings dam leaks

ldquoThe two-year-old Atlas Thunder Bay facility with more than 60 pumps now in the rental fleet up to 18 inches and miles of hose and pipe have allowed us to respond to several mining emergencies this year with pumps and men on the ground the same day And with Godwin Pumps (Xylem) at our side com-

bined with our rental fleet we are confident we can solve any challenge a mine may be facing

ldquoIn many cases the reality is temporary and emergency pump systems do not get full benefit from all of a mines depart-ments or review and the supplier must ensure that the pump systems are safe For example such as ensuring the piping pres-sure limits of the HDPE line we may tie into are not exceeded or the customer uses proper high-pressure hoses connections and with whip checks It takes a big fire-fighter to hold a two-inch diameter fire hose with 60 psi so imagine an eight-inch diameter hose on a pump with 250 psi people do not see this all the time and we are continually educating our clientsrdquo

Kokeza adds ldquoOur experience in other industries with a Ministry of Environment Certified work force working with fish-sensitive areas permits to take water and groundwater water treatment allow us to take a pro-active approach to prevent detect and avoid emergencies and supply plans and pumping systems that will reduce liabilitiesrdquo

Atlas also offers an extensive line of WellPoint educator deep-well and pressure-relief systems to accommodate any dewatering need ldquoIf the water table needs to be lowered after 70 years we are confident we have done it beforerdquo says Kokeza

And finally of particular interest to the mining community the companyrsquos pumping business offers pumps for open-pit dewatering tailings and ponds water and slurry management emergency response temporary fire pumps temporary process pumps and systems designed to deal with fish habitats and or treatment CMJ

PUMPINGHigh-head dewatering pumps are vital to many mining operations

Pumps1indd 27 2015-08-25 1146 AM

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

Min

eral

s N

ethe

rlan

ds b

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erve

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arks

and

or

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arks

of W

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vice

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

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GRIEVE CORPORATION AD4392a

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

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A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 28: Cmj de 09012015

28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

SMOOTHSLICKamp

COATINGS PROVIDE ANSWERS TO FLUID-HANDLING PROBLEMSSpecial Report

A look at various fluid-handling components coated to improve performance

Pumps2indd 28 2015-08-25 1151 AM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

Cop

yrig

ht copy

201

5 W

eir

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eral

s N

ethe

rlan

ds b

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arks

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arks

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

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6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 29: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 29

P umps and other fluid-handling equipment may suffer from multiple problems including physical and mechanical damage as well as general or localized erosion and corrosion These problems are linked to

decreased efficiency and poor performance leading to increas-ing operational costs so therefore minimizing performance deterioration is an important factor for pump manufacturers and end users

Indeed hydraulic losses account for most of the efficiency decrease (9 for a mixed flow pump to 20 for radial flow) Coating technology can help in decreasing these losses increas-ing the pumprsquos performance and reducing operational costs

Hydrophobic coatings In pumping equipment it is possible to reduce power consump-tion and improve the hydraulic properties by changing the pump surface finish

In fact the loss of efficiency is caused by frictional forces creat-ed between the fluid and the walls the acceleration and the slow-ing down of the fluid and the change in the fluid flow direction

The smoother the pump walls the more fluid turbulence will be reduced thus reducing the energy required for the pump to move the fluid through the hydraulic passage

In order to get the best performance possible pump manu-facturers seek to create the smoothest surface possible to reduce

the turbulence of the fluid This can be obtained by the polish-ing of the selected metal such as stainless steel however this method is extremely time consuming and expensive

A smooth surface finish can also be obtained by applying an erosion-corrosion resistant efficiency coating on the pumprsquos volute and impeller These polymeric coatings are specifically designed to improve efficiency on fluid-handling systems and protect metals against the effects of erosion-corrosion Their unique combination of properties such as self-leveling applica-tion hydrophobicity and hydraulic smoothness makes these coatings ideal candidates for lining the hydraulic passages of pumps These coatings possess a low electronic affinity towards water molecules and result in a smooth glossy finish once applied onto a metallic surface This allows the water or other aqueous solutions to easily slide on the surface of the coating

The smoothness of these hydrophobic epoxy coatings is evi-dent when the surface condition of high-performance coatings designed to improve efficiency of pumps pipes valves and other fluid -handling equipment was measured as 15 times smoother than polished stainless steel

As a result of the smoother surface and reduction in flow resis-tance and friction the hydraulic performance of the pump can be increased The performance curves of a single-stage end-suction centrifugal pump with a 250mm suction and discharge branches before and after being coated was performed by the British

PUMPS

Water a precious resourceGEHOreg PD slurry pumps Water is a precious resource the

lifeblood of the planetWater is also a resource at risk

GEHOreg high efficiency pumps allowthe transportation of high solidcontent tailings Users enjoysignificant energy savings not tomention dramatically reduced waterconsumption and extended dam life

To find out more about how we can help improve your operational and sustainability performance contact us at

weirweirmineralscomwwwweirmineralscomgeho

PD slurry pumpsGEHOreg

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Minerals

Pumps2indd 29 2015-08-25 1151 AM

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

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ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

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Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

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Canada 1-800-892-8293 bull USA 1-800-748-2375

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 30: Cmj de 09012015

National Engineering Laboratories (NEL) and the pump in uncoated con-dition and running at 1300 rpm was originally found to deliver 875 m3h at 265m head and with overall peak efficien-cy of 835 (overall efficiency defined as the ratio of water power output to mechan-ical power input at the shaft)

Testing of a coated pump gave a max-imum of 6 increase in the peak efficien-cy and a reduction in power consump-tion of 51 kWh at duty point Assuming

a 5000 hours operating cycleannum the power savings over this period would amount to 25500 kWh

Similarly results have been measured by many pump manufacturers around the world and feedback on industrial equipment protected with coatings show that it is possible to achieve a return in excess of new pump

Pump efficiency In 2013 a water-elevation plant in Portugal

was looking for a solution to improve its hydraulic efficiency This plant was chosen because of its high energy consumption and costs with an annual consumption of 17 GWhyear and a volume of water propelled of 12 Mm3year recorded in 2012

The client was looking for a reliable and long-term solution to restore the damaged pump while reducing internal friction in the impeller and volute to enhance hydraulic efficiency

An internal pump coating was chosen to maximize water flow and reduce energy consumption while reducing internal wear and minimize future maintenance actions

The pump was disassembled and all internal surfaces were grit blasted to remove the previous coating The surface was then cleaned and examined to ensure that it was free of dust and other particles

After grit blasting the application areas were masked for the application of an epoxy paste grade composite for metal repair Simply applied using an applicator provided with the product this material was used to reconstruct the areas dam-aged by corrosion rebuilding the original surface profile The solvent-free compos-ite provides excellent corrosion resistance and helped ensure the substrate is pro-tected when it comes in contact with an abrasive material

Within the two-hour over-coating window the first coat of the composite was applied by brush followed by a sec-ond coat to obtain a total dry film thick-ness of 500μ This coating was specified because it provides protection against erosion and long-term corrosion of equipment whilst improving the effi-ciency of the pump

The main results after coating the pump and changes to the programming of the water elevation plan were

s Reduced energy consumption during non-peak hours 449 to 393 (-125)

s Reduced energy consumption by 149 (kW m3) 147247 KWh recorded in eight months

s 203 cost reductions ROI 4 months of operation CMJ

Information for this Special Report provided by

Belzona Polymerics Limited UK a world leader

in the design and manufacture of polymer repair

composites and industrial protective coatings for

the repair protection and improvement of

machinery equipment buildings and structures

30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

KSB is the single source for all your pumping needs Our experts help ensure the best possible solution for every job no matter if itrsquos selecting a new pump stocking up on spare parts or refurbishing existing equipment

KSB is well known for producing reliable and long lasting GIWreg Minerals slurry pumps Together our mining team strives to be an innovative partner that provides you with the longest wearing slurry amp process solutions We are your partner today and in the future

KSB Mining Your partner for pumps valves and service

KSB Pumps Inc middot wwwksbca middot infoksbcanadacom GIW Industries Inc (A KSB Company) middot wwwgiwindustriescomYou can also visit us at wwwksbcomsocialmedia

Pumps2indd 30 2015-08-25 1151 AM

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

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INTERACTIVE PRINT

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Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 31: Cmj de 09012015

C A N A D A rsquo S F I R S T M I N I N G P U B L I C A T I O N

wwwcanadianminingjournalcom

BUYERSrsquo GUIDE 2016

FOR MORE INFORMATION PLEASE CONTACTROBERT SEAGRAVES bull rseagravescanadianminingjournalcom bull 1-416-510-6891

JOELLE GLASROTH bull jglasrothcanadianminingjournalcom bull 1-416-510-5104Toll Free Canada and USA 1-888-502-3456 ext 2

wwwcanadianminingjournalcom

Donrsquot miss the opportunity to be listed in our 2016 Buyersrsquo Guide You can list your company any time on the online version at wwwcanadianminingjournalcomminingonline

Your listing will appear live within a couple of days of returning the forms This information will also be picked-up for the print edition which will be published in November 2015

The basic company listing is a complimentary service Enhancement options are available

Total print distribution is over 12000 10200 to our AAM Audited subscribers and 2000 at trade shows (Mineral Exploration Roundup SME Annual Meeting PDAC Convention and CIM Annual Meeting)

Our website wwwcanadianminingjournalcom averages 32000 unique visitors per month (Google Analytics)

Companies currently listed can also update their listing at wwwcanadianminingjournalcomminingonline

They can view their current listing at wwwcanadianminingjournalcomesource

Deadline for revisions to appear in our November print edition is September 21 2015

NOW IN

PRODUCTION

2016 Buyers guide adindd 31 2015-08-21 1024 AM

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 32: Cmj de 09012015

32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

TECHNOLOGY

A LOOK AT HOW MOBILE APPSCAN IMPROVE MINE SAFETYBy Michael Benedict

ARE NOWEVERYWHERE

Hand-held devices make site-safety reporting quicker and more accurate thanks to mobile inspection apps that allow for multi-media photos etc to report complicated issues and provide visual proof as needed

APPS

Appsindd 32 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 33: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 33

M ine operators have become increasingly sophisti-cated in developing safety programs that protect workers and overall operations

That said worker and site-safety reporting for compliance and regulatory requirements has historically been heavily reliant upon paper forms and manual processes ndash which can negatively impact reporting accuracy and timeliness the costs associated with safety programs and the productivity of workers responsible for these tasks

The need to evaluate mine safety programs is accelerated by requests for real-time documentation on workersite safety and injuries among other requirements

For mine operators seeking to enhance worker and site-safety reporting and compliance switching from paper forms and Excel spreadsheets to mobile apps offers several key benefits

Mobile apps for inspections improve quality controlWhen it comes to conducting quality control safety and compliance inspections at mine sites paper forms introduce several vulnerabilities and inefficiencies Workers could report inspecting a site they never visited and workers must rewrite the same information over and over use expensive carbon copies that are hard to read and easily lost and are limited to text-only data

And then if there is a safety issue It could take hours or days to get the information to the right person in order to deal with the issue

Mobile inspection apps allow your mining business to build in-time and date stamps as well as GPS location to help ensure inspections are being done correctly and in accordance with company and industry regulations

Mobile inspection apps also allow for multimedia (photos etc) to more easily report complicated issues and provide visual proof as needed

Finally rather than collecting and filing multiple rounds of paper inspection form signatures digital signatures can be col-lected directly on the smartphone or tablet device using just a finger or stylus Mobile apps also create a standardized process for collecting important data

Mobile apps address cost challenges of safety reporting Historically all but the largest mine operators were priced out of custom building mobile business apps Even if a mine operator could budget for one app ndash which may only work on some mobile platforms and devices ndash evolving business requirements would mean that the functional value of the app to employees and others might decrease over time Then the mine operator

Canada + 800 414-8314miningsolutionsgoldercomwwwgoldercom

Complex geology remote sites and technical issues are some of the engineering challenges faced in mining projects Add to that obtaining the required social environmental and regulatory approvals and your project can experience unexpected schedule and budget overruns Integrating your engineering and environmental studies can result in a more robust design streamlining the process and avoiding unnecessary delays and costly rework

Engineering Earthrsquos Development Preserving Earthrsquos Integrity

FROM EXPLORATION TO CLOSUREJUST ASK GOLDER

Coal Rights For Sale

wwwchugachcom

Chugach Alaska Corporation (Chugach) an Alaska Native Corporation is selling its coal rights in the Bering River Coal Field in southcentral Alaska

The coal is classified from bituminous to anthracitic and

is located on approximately 62500 acres of full fee estate

lands owned by Chugach Proposals will be accepted

through Monday September 21 2015 For more information

and a sales prospectus please contact

David Phillips Land amp Resources Manager chugachcoalchugachcom

Appsindd 33 2015-08-25 328 PM

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 34: Cmj de 09012015

would be forced to spend more money customizing or changing the app over and over again

Not only are custom mobile app builds expensive but they also tie up precious IT resources that can be better spent in other areas of the business The good news for mine operators is that cloud-based app builder tools and even third-party business app stores are removing these traditional cost and resource barriers

In fact Canvasrsquo recently released 2nd Annual Mobile Business App survey finds that 68 per cent of organizations were able to build a mobile business app in one day or less using cloud-based tools In most cases the apps were built by individuals who held little to no programming or IT expertise at all

Mobile apps strengthen safety programsThe accessibility of mobile apps can ensure that safety does not take a back seat to budget ndash especially during down economic cycles when mine operators must make hard choices and could be tempted to short shrift certain safety measures and even underreport injuries

According to the Office of the Inspector Generalrsquos 2014 audit of the United States Department of Laborrsquos Mine Safety and Health Administration (MSHA) more than 9000 injuries went unreported from 2000 to 2012 resulting in more than $1 mil-lion in missed penalty fees

ldquoMine operators benefit from having low rates of reported injuriesillnessesrdquo the audit states ldquoHigh rates of injury or illness can increase workersrsquo compensation expenses and may single out mines for increased enforcement by MSHArdquo

Ultimately a safety program must not only protect workers but also maximize the time of employees and supervisors while keeping costs down Mine operators are going to have to remain at the top of their game when it comes to safety mdash

34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMPACT SHELF OVENS

GRIEVE CORPORATION AD4392a

5-80 cuft Capacity Temps to 1250degF UL NFPA 86 Rated Gas or Electric Models

wwwgrievecorpcom 847-546-8225

wwwminingoptimizationcom

ldquoExcellent opportunity to meet and discuss mutual challenges in the mining

industry especially those challenges that if overcome could enable significant value

generation for the future of miningrdquo

Paul Roos Vale

ldquo

6-9 October 2015 Toronto Canada

Special discount for CMJ readers Book now and save up to 25 off the standard price Use discount code UN931CMJ

TECHNOLOGY

A website that gives full details

Appsindd 34 2015-08-25 328 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 35: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 35

For more than 35 years BBA has been helping industrial clients transform complex problems into practical innovative and sustainable solutions

Recognized for its extensive field experience and cutting-edge expertise BBA delivers a comprehensive range of consulting engineering services from studies and asset integrity plans to commissioning and operational support

With offices from coast to coast BBA is synonymous with proximity and agility

BUILT ON EXPERIENCE FUELLED BY EXPERTISE

which means not overlooking MSHArsquos requests for documents like employee medical and personnel records or putting off pay-ing delinquent fines

Mobile apps strengthen self-audit programsUnlike large-scale mining operations small to mid-sized mines typically lack the bandwidth for an internal team of safety special-ists to manage training and ensure that regulations are met in a timely fashion By leveraging DIY app builder tools and cloud-based mobile app solutions operators are able to enhance safety operations without the need for staffing resources that are typically not available

Mine operators can in effect digitize manual processes and paper forms for self-audits through the use of cloud-based mobile apps Essentially a self-audit walks mine operators through the main areas MSHA inspectors will evaluate when they visit the mine while prompting you to consider whether or not you meet compli-ance Self audits can be enhanced through greater accuracy and efficiency by using mobile apps instead of paper forms and while they typically donrsquot cover every single standard they do touch on key parts of an inspection including

Mandatory safety policies Necessary safety policies range from the competent person you designate to handle emergencies to haz-ard communications and signage

Records and examinations Required records span from acci-dent illness and injury reports to proper documentation for all independent contractors material safety data sheets (MSDSs) and records of routine inspections on machinery and equipment

Fire prevention This includes proper on-site equipment for fighting all stages of a fire records of routine inspections of fire extinguishers and hydrostatic testing and appropriate storage of oxygen cylinders explosives and waste materials

Electrical Assessments in this area involve the set up and main-tenance of fuses and circuit breakers guarding lights grounding insulation on wires and cables lockouttagout procedures and transformation enclosures

Loading Hauling and Dumping This covers everything from backup alarms brakes window construction and seat belts on mobile equipment to berms at dumping locations loose slopes dust control and road cleanup

Machinery and Equipment Included here are conveyor warn-ings guard construction guarding against falling or flying materi-als or moving machine parts and high pressure hose safety chains

Personal Protection Equipment (PPE) and Practices PPE encompasses the use of glasses hard hats foot ware noise scaffold-ing fall protection equipment general housekeeping passageways dust overexposure access to toilets and more

For mine operators grappling with how to manage worker and site-safety compliance and reporting cost-effectively and efficient-ly mobile apps provide a compelling approach relative to paper forms and manual processes CMJ

Michael Benedict is Vice-president application Store at Canvas a leading pro-

vider of cloud-based software that enables businesses to replace paper forms

and processes with customizable mobile apps for smartphones and tablets

Appsindd 35 2015-08-25 328 PM

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 36: Cmj de 09012015

T his past June the establishment of the Extractive Sector Transparency Measures Act (ESTMA) brought into focus the efforts and commitment of the Canadian government and governments around the

world in the fight against bribery and corruptionThe ESTMA along with the Extractive Industry Transparency

Initiative (EITI) highlight the anti-corruption efforts made by the government of Canada as well as other authorities around the world who promote greater transparency and accountability in business transactions Additionally the increased enforcement action by the RCMP and their international law enforcement partners demonstrate their commitment to investigate and pros-ecute companies and individuals who partake in corrupt action

By the nature of its activities in high-risk countries the extractive industry is particularly at risk of being entangled in bribery and corruption schemes At every stage of the life cycle of an extractive project contacts with foreign government offi-cials are constant and numerous exposing one to potential opportunities and pressure for corruption to occur

The impact to a company facing a conviction under the Corruption of Foreign Public Officials Act (CFPOA) goes beyond the criminal sanctions stemming from it which may include unlimited fines for the company and up to 14 years in jail along with fines for individuals

The following additional costs and consequences associated to a corruption investigation prosecution and conviction should give pause to executives who may look at anti-corruption com-pliance as too costly and burdensome to implement

s Legal and auditing costs Past corruption cases in Canada and elsewhere have shown that the legal and auditing costs resulting from internal investigations and the remediation process equals and often surpass the actual cost of the criminal fine Court imposed probation conditions also add to these costs

s Impact on productivity Company officials and other resources are diverted to dealing with the repercussions of cor-ruption instead of concentrating on core business Issues of employee morale retention hiring and other HR issues as a result of a corruption investigation can also negatively impact productivity

s Civil liability with shareholders The increase in cor-ruption related prosecutions of companies globally has been followed by an increase in class-action lawsuits against these companies and executives deemed responsible for the resulting decline in share value

s Successor liability Where the goal of many junior min-ing and exploration companies is to secure a MampA deal poten-tial buyers or joint venture partners will walk away or demand deep discounts and waiver conditions rather than assuming the liability of a company facing criminal sanctions for bribery

s Impact on brand and potential business A compa-nyrsquos brand and reputation can be seriously impugned by a cor-ruption investigation and conviction which can impair its abil-ity to obtain financing secure business relationships and obtain contracts International arbitration of disputes will not be avail-able when a contract is secured through a bribe

s Higher costs to prove legitimacy and remediation There will likely be higher costs resulting from the need to meet greater due diligence requirements to secure financing insurance and other support from private and government agencies

s Proceeds of crime Any profits stemming from contracts and agreements secured through a bribe could be considered proceeds of crime and thus possibly be forfeited

The costs and consequences of bribery and corruption cannot be ignored The changing business landscape for the extractive industry requires companies to be pro-active in reducing their risk and exposure by implementing a robust anti-corruption compliance program

Leveraging available cost-effective tools anti-corruption compliance should be viewed as an investment that increases a companyrsquos ability to manage risk control costs and adopt an ethical governance model that will improve their ability to effec-tively prevent detect and address bribery and corruption risk

Implementing a robust anti-corruption compliance pro-gram can reduce the risk of being subjected to a CFPOA (or foreign) prosecution and it is now being viewed as a competi-tive business advantage when dealing with potential MampA and joint venture partners

The RCMP is committed in its efforts to combat bribery and corruption This commitment also involves working with and helping Canadian industry reduce their risk and exposure to bribery and corruption through outreach and prevention activities

For more information and links to material and anti-corrup-tion compliance tools visit wwwrcmp-grcgccaottawacorrup-tionindex-enghtm CMJ

SGT PAT POITEVIN is Senior Investigator Outreach Coordinator Sensitive

and International Investigation Unit Royal Canadian Mounted Police

By Sgt Pat Poitevin

Stopping bribery and corruption

36 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

COMMENT

Commentindd 36 2015-08-25 329 PM

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 37: Cmj de 09012015

SEPTEMBER 2015 CANADIAN MINING JOURNAL | 37

PROFESSIONAL DIRECTORY

AD

VER

TIS

ERS

IND

EX

AEL Mining Services 9 wwwaelminingservicescomBBA 35 wwwbbacaCementation Canada15 wwwcementationcomCGIS 7 wwwcgiscaChugach Alaska Corp 33 wwwchugachcomDMC Mining37 wwwdmcminingcomDumas Mining 17 wwwdumasminingcomGoldcorp 23 wwwgoldcorpcomGolder Associates 33 wwwgoldercomGrieve Corp 34 wwwgrievecorpcomHard Line Solutions 39 wwwhard-linecomHitachi 11 wwwhitachiminingcomKSB Pumps 30 wwwksbcaMetso 2 wwwmetsocomMontt Group37 wwwmonttgroupcomNuna Logistics 22 wwwnunalogisticscomSiemens Canada 4 amp 40 wwwsiemenscomminingSRK Consulting 37 wwwsrkcomStu Blattner Inc 37 wwwstublattnercomWeir Minerals 29 wwwweirmineralscom

MONTT GROUP SpAChilean Mining Attorneys

Montt Group SpA offers a full array of legal and technical services particularly creation of mining companies filing for mining claims easements administrative permits due diligence and legal surveillance

Own Offices in Antofagasta and Copiapo and other cities Since 1974 serving clients in Chile and Latin American countries

wwwmonttgroupcom+562 2544 6800 monttciamonttciacl

Your complete raise bore solu on

Over 35 Years of Experience

wwwstublanercom

Canada 1-800-892-8293 bull USA 1-800-748-2375

wwwdmcminingcom

Contract Mining bull Shaft Sinking bull Raise Boring and Raise Excavation Mine Construction and Infrastructure bull Mine Development and Rehabilitation

Headframes and Hoisting Plants bull Ground Freezing and Grouting Programs Engineering Design and Feasibility Studies

Property Development through Equity Investment Partnerships or Joint Ventures

For 35 years your safest choice forhellipDownload the free

Layar App

Scan this page

Discoverinteractive content

INTERACTIVE PRINT

Bring this ad to life with

Professional Directoryindd 37 2015-08-25 1157 AM

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 38: Cmj de 09012015

A switch to growth mode productivity improvement and access to capital are all critical risks for mining companies around the world The three rank as the top business risks in EYrsquos Business Risks in Mining

and Metals 2015-2016 Report Most in the sector will under-stand why these particular risks top our list but itrsquos the new and under-the-radar risks that have many going back to the drawing board and asking critical questions about where to focus their efforts in the coming years

Cybersecurity appears on our top 10 risks list for the first time this year as cyber-hacking in the sector has become more widespread and sophisticated In fact in our Global Information Security Survey 2014 65 of mining and metals companies said that they had experienced an increase in cyber threats over the past 12 months ndash a number that is likely understated as many incidences go unreported

A big reason why cybersecurity is a growing risk is because of the increased connection between operational technology (OT) and information technology (IT) networks In the past IT security risk was not such a mainstream issue However many mining and metals companies have been investing heav-ily in new technology to manage and run their networks cen-trally in a bid to improve production and operations automate their supply chain reduce costs improve maintenance and streamline data flow

At the same time mining and metals companies have histor-ically underinvested in security and security budgets are often static despite increasing cyber threats This means the likelihood of compromised cyber security is on the rise Thatrsquos a problem because a cyber-attack can cost a company millions of dollars in lost production threaten worker safety and even cause massive reputational damage if confidential or stakeholder sensitive information is leaked Applying greater levels of security and control around IT to OT is critical in order to maintain cyber-security in this integrated technology environment

Meanwhile Canadian companies are facing some particular risks they canrsquot afford to let fly under their radar Increased trans-parency requirements ndash such as the Extractive Sector Transparency Measures Act which came into effect on June 1 ndash and a looming skills shortage are issues that should be top-of-mind for compa-nies in here

As I mentioned in a previous column in Canadian Mining Journal as new transparency requirements become the norm in many countries therersquos a risk that publishing unexplained tax

figures may result in misconceptions about a companyrsquos tax pro-file ndash particularly around the reasons for low effective tax rates For that reason mining and metals companies ought to be pro-active about implementing processes and strategies that will allow them to mitigate this risk

When it comes to labour in Canada an estimated 40 of the workforce in resource extraction sector is at least 50 years old and around 33 of those are expected to retire by 2022 These retirements will impact operational continuity and lead to a great loss of organizational know-how and operational experience for mining companies Itrsquos a big issue that compa-

nies must address Strong talent management programs that focus on retaining the right people for todayrsquos challenges will be as critical to the future success of mining companies as investment in exploration

The top 10 business risks for mining and metals companies today compared to the top 10 in EYrsquos 2008 report at the peak of the super-cycle provides a stark contrast to the issues faced now and then and underlines the cyclical nature of the sector Just three of the top 10 risks from 2008 rank in the top 10 this year Thatrsquos a clear message that the nature of this business is fundamentally changing What works today wonrsquot be what will help companies thrive in the future Companies must embed a culture of curiosity and innovation in everything they do ndash from IT to operations to human resources and beyond CMJ

BRUCE SPRAGUE is a Partner and EYrsquos Canadian Mining amp Metals Leader

He is based in Vancouver For more information visit eycomcamining

By Bruce Sprague

Beware the not-so-obvious risks in mining and metals

38 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM

UNEARTHING TRENDS

WHEN IT COMES TO LABOUR IN CANADA AN ESTIMATED 40 OF THE WORKFORCE IN RESOURCE EXTRACTION SECTOR IS AT LEAST 50 YEARS OLD AND AROUND 33 OF THOSE ARE EXPECTED TO RETIRE BY 2022

EYindd 38 2015-08-25 330 PM

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 39: Cmj de 09012015

HardlineAdindd 39 2015-08-21 1028 AM

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040
Page 40: Cmj de 09012015

siemenscommining

1980

SIMINE Gearless Mill DrivesTake benefit from an expert partner for drive solutions ndash backed by 500 operating years of experience

E200

01-F

420-

T195

-X-7

600

The Antapaccay copper mine in Peru mines and mills ore with the greatest possible efficiency ndash thanks to a 40-foot SAG mill and two 26-foot ball mills Because reliability and robustness are extremely important at an elevation of 4200 meters above sea level the mining company se-lected drive solutions from Siemens One 24000-kW ge-arless drive and two 16400-kW models have been kee-ping the mills running steadily since 2012 even under the extreme conditions in the high mountains of South Ameri-ca

Siemens provided 50 operating SIMINE Gearless Mill Drives in the mining industry since 1980 In the 34 years since then these drives have been in operation for a com-bined total of 500 years Downtimes due to unscheduled maintenance work average less than twelve hours per year With a gearless mill drive from Siemens you can be part of this unparalleled success story and benefit from the extensive experience of an expert partner

Quantity of operating SIMINE Gearless Mill Drives

500 operating years

Year

10

0

1980 1990 2000 2010

20

30

40

50

27135 7x10indd 1 2015-08-12 306 PM

Siemens OBCindd 40 2015-08-21 1029 AM

  • 001
  • 002
  • 003
  • 004
  • 005
  • 006
  • 007
  • 008
  • 009
  • 010
  • 011
  • 012-016
  • 017
  • 018-023
  • 024-025
  • 026-027
  • 028-030
  • 031
  • 032-035
  • 036
  • 037
  • 038
  • 039
  • 040