Canada’s gold stash down to last bit as it almost empties reserves
Canada’s official holdings of the precious metal now amounts to just a few dozen ounces after it nearly sold 22,000 ounces of gold coins in February.
OTTAWA—The Canadian government has nearly completed a gradual sell-off of its gold reserves as its holdings of the precious metal now amount to just a few dozen ounces.
Data from the World Gold Council suggest Canada stands apart from its industrialized peers as the only G7 country without a stockpile of at least hundreds of tonnes of gold.
The federal Finance Department says Ottawa unloaded nearly 22,000 ounces of gold coins in February for about $35 million.
The department says the government now holds just 77 ounces of gold — valued around $130,000.
A department spokesman says the government has a long-standing policy of diversifying its portfolio by selling physical commodities like gold in order to invest instead in assets that are more easily traded.
Former senior Finance Department bureaucrat Don Drummond says he doesn’t think it makes any sense for Canada to hold any gold because it hasn’t delivered a good rate of return over time and it costs money to store it.
Drummond says that hundreds of years ago gold symbolized the wealth of a country.
Canada has been gradually selling from its gold stash for decades and, in recent years, the government has increased its holdings of U.S. and British currencies.
In February, the U.S. held about 8,133 tonnes of gold, which made up 72 per cent of its reserves, according to the World Gold Council.
The council also said Germany had 3,381 tonnes for 66 per cent of its reserves last month, while Italy and France each held more than 2,400 tonnes — over 60 per cent of their respective reserves.
More on thestar.com
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CANADIAN GOVERNMENT are TRAITORS and TREASONOUS LIARS! CANADA is LOADED with GOLD, QUEBEC and ONTARIO, BELOW is JUST QUEBEC, TREASON!
NOTHING MORE than I HATE – IS OUTRIGHT LIES!
http://www.richmont-mines.com/investor-relations/investor-centre
EXCELLENT POTENTIAL FOR VALUE CREATION
- Focused on responsible and sustainable long term strategy of value creation and growth
- Island Gold Mine PEA highlights potential for increased production and lower All-In-Sustaining Costs
- Strong production profile: 2015 forecast of 87,000 — 95,000 Au ounces
- Sound balance sheet and capital structure: 58 million shares outstanding, minimal debt and healthy cash position
- Quality asset base in safe, mining friendly jurisdictions, and favourable Canadian dollar exposure
- Track record of success — 25 years of gold production in Canada
- Island Gold Mine — successfully developing 1.1 million ounce resource envelope below operating, permitted & staffed mine in Ontario
- Well-positioned in under-explored Ontario mining district
CORPORATE GOVERNANCE PRACTICES
BOARD OF DIRECTORS
Richmont’s Board of Directors are seasoned professionals from a variety of relevant business and mining backgrounds. The Board is composed of five directors, most of whom are considered to be independent directors within the meaning of Regulation 58-101 Disclosure of Corporate Governance Practices. The independent directors within the meaning of Regulation 58-101 are Elaine Ellingham, René Marion and Michael Pesner. Renaud Adams is not considered to be independent as he is President and CEO of the Corporation. H. Greg Chamandy is not considered to be independent as he performs certain management tasks, and is eligible to receive annual compensation and could receive a bonus, the latter of which is directly linked with the Corporation’s performance.
Following a recommendation by the Corporate Governance Committee on November 1, 2010, the Board of Directors determined that its independent members would meet for a period of time during each directors meeting, without Richmont management and non-independent members being present.
As the Executive Chairman of the Board is not considered to be independent, the Board of Directors named Elaine Ellingham as the Lead Director on November 1, 2010. In this role, she is responsible for ensuring that the Board remains independent of management, for studying the comments and requests made by independent Directors, and for presiding over the meetings held by the independent Directors without management and non-independent Directors being present, and subsequently for outlining their deliberations to the Board of Directors.
BOARD MANDATE
POSITION DESCRIPTION
BOARD DIVERSITY
ORIENTATION AND CONTINUING EDUCATION
ETHICAL BUSINESS CONDUCT
ASSESSMENT
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http://raregoldnuggets.com/blog/?p=1184
Gold Nuggets and Placer Deposits in Quebec
Quebec is home to a good number of mines producing a variety of minerals including gold, iron and copper among others. This is due to the fact that around 90% of the province lies on a substratum of Precambrian rock. This rock is known to have rich mineral deposits, and Quebec is no exception. Quebec’s gold deposits are found as both mineral and placer form. That means that recreational miners can successfully find small gold deposits in the rivers and streams in reasonable quantities, and larger mining companies are attracted to the area due to the larger underground reserves.
Discovery of Gold
The gold rush in Quebec began earlier that in the rest of Canada. In 1846, a young girl, found a hen egg sized nugget in the Gilbert River which was later named after her. The news of the find spread like wild fire and prospectors flocked the region looking for the next big find. Placer deposits in the area have been quite rich. This is demonstrated by the fact that Quebec is home to the largest nuggets ever found in Canada weighing at 52 and 45 each.
Gold exploration in the province, and specifically the Eastern Townships and Beauce lagged behind the rest of the mineral rich region in the country due to issues with property ownership. The regions of Abitibi or Chibougamau which it shares with Ontario, the gold deposits were state property and prospecting was allowed while in the Eastern region of the province, mineral rights were awarded to property owners who received their land under the English Regime. This led to numerous prospecting and mining operations to be abandoned in the area.
Read: 3 Reasons You Never Find Gold
In 1982, the government took back mineral rights and the area was reopened for staking once more. Since the prospecting and mining operations in these areas had been limited to very few operators, it was re-evaluated in a bid to discover any new deposits. This re-evaluation yielded a lot of success with numerous areas in the region being found to have substantial gold mineralization. This ushered a new era of prospecting and mining that has resulted in the establishment of some successful mines.
Another challenge that Quebec has suffered in its quest to exploit the massive gold resources that lie below its substratum is the recent uncertainty of the legal environment when it comes to mining. There was a recent hike in the mining taxes that was implemented without any consultation with industry players. This was a surprise that shook the local mining industry.
Gold Panning in Quebec
Recreational gold miners can find some gold in the non-glacial stream deposits around the southern part of Quebec. Miners should look out for gravels that seem to be rusty brown in appearance indicating high iron content. Such gravels are known to have more gold due to the iron sulphide they contain.
On the other hand, gravels that have a grey appearance usually hold a lower amount of gold. In these streams you will find flour gold in most cases, but with the history of gold nuggets in the province you can still get lucky and have your name in history like others who were as lucky in the past. Metal detecting may be worthwhile since there is a history of large gold nuggets in Quebec.
Also Read: Gold Mining in Ontario
For the most successful placer gold mining operations, you will need to know where to look. In this case the Chaudiere River is a great place to begin. Any rivers and streams running from the gold rich Abitibi Gold Province that lies partially in Quebec with the other half in Ontario forms another great place to look in.
It is always important that you follow the set up regulations by the authorities on panning for gold. It is especially important to observe environmental concerns and appropriate rules and regulations.
Other Minerals Produced in Quebec
Quebec is home to 30+ mines producing a variety of minerals. The first minerals to be discovered and mined in the province include asbestos, sulfur, lead, zinc and silver. These were the first minerals to be mined even before viable gold deposits were discovered. Copper, iron and asbestos formed the main mining operations after the Second World War in a period where mining in Quebec hit its highest heights.
Today more gold deposits are being found in Quebec with the Northwestern part of the province attracting a lot of attention from mining companies. Deposits in Malartic, a small town in the region reveal over six million ounces underground and over three million ounces in the areas close by.
The rising value of gold has spurred a modern gold rush as deposits and mines that had been deemed uneconomical are given a new lease of life.
Gold Mining and Prospecting in Ontario Canada
Ontario has been producing gold for over a century. However, it is important to note that if you are looking to find gold by panning, it may not be as easy as you think, even though Ontario is extremely rich with gold.
Ontario’s gold reserves are mostly mineral deposits making it quite difficult to find any nuggets or flour gold deposits in the river sediments. Recreational miners will find it difficult to find locations they can get their gold from using panning, since nearly all of the gold production here comes from lode mining operations.
If on the other hand you have knowledge of where such gold deposits have been found in the past, you stand a better chance of striking it rich with gold found during your panning operation.
When it comes to panning the waterways of Ontario, it is always important to have an idea of where the gold deposits are found before you pick spot and get to work. Most areas where placers can be found are in glacial till. Long ago, glaciers spreading southward would grind up gold bearing ores and transport them, grinded up to a fine texture, and deposit them as the glaciers receded. This is where most of the gold in the Midwestern United States comes from.
Before you commence to doing any gold panning, remember to bring the necessary tools. It is important to remember also when it comes to prospecting you always must seek permission when accessing private property. Finally make sure that you treat the area that your mining is treated with respect.
Renewed Gold Rush
With technological advancements making gold mining cheaper and more convenient, coupled with the large increase in gold prices over the last few years as fears over holding currencies mount has provided more than enough motivation to bring back mining operations that had been disbanded after it proved too expensive to continue operations. This is the story for Canada’s largest gold deposit in Detour Lake in Northern Ontario. The location is identified as one of the largest pure gold deposits in North America as well. Detour mine sits on over 15 million ounces of gold with annual production being pegged at 650,000 ounces for each of the 20 years the mine will be in operation.
This has been a much needed breath of new life into the surrounding towns as mine workers flock to the area to find employment in what seems to be the most rewarding find yet.
Also Read: Gold in Saskatchewan
Gold Discoveries in Ontario
Gold was discovered in Ontario back in 1866. Since then numerous claims were registered and several gold rushes to the province witnessed at different periods in history. The often quoted saying by prospectors, that you can only find gold where gold has been discovered has been proven to be true over and over again in the region. Ever since that first discovery, more and more claims and viable mines were discovered around the same region moving outwards.
The first discovery was made at Eldorado which is located in the southeastern part of Ontario. After the 1866 discovery, there was a small gold rush of sorts but the mine established at the location proved to be too costly to maintain and was therefore closed only after two years of operation. However more was to come.
In 1909, a larger deposit which still produces gold up to date was discovered close to Porcupine Lake. The site is home to Dome Mine. This area received a lot of attention from prospectors and more claims were made around it including a site which was home to Hollinger mine which produced over 19 million ounces of gold between 1910 and 1968.
Another discovery was made in 1911 near Kirkland Lake. The discovery led to the beginning of the Kirkland Lake gold rush which attracted some famous prospectors and made a good number of them quite wealthy. Some of the mines that were established in the area include Lakeshore, Tech-Hughes, Sylvanite and Writ-Hargreaves.
Red Lake was another famous gold rich region and is said to have witnessed one of the last gold ruches witnessed in North America. It also resulted in the busiest airport in the world at the time with flights every 15 minutes.
Ontario lies on the Precambrian rock that is rich in a variety of mineral deposits. It is this rock that houses the mineral deposits that are being prospected and mined currently in a bid to make the next big find in a region where gold deposits seem to be unlimited.
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Board of Directors
DONALD K. CHARTER , Chairman & Director IAMGOLD Corporation
SYBIL E. VEENMAN
http://www.iamgold.com/English/operations/reserves-and-resource-summary/default.aspx
2015 Mineral Reserves and Resources
Mineral resources (“resources”) and mineral reserves (“reserves”) have been estimated as at December 31, 2015 pursuant to Canadian securities regulatory requirements, specifically the requirements of National Instrument 43-101 and the definitions of resources and reserves incorporated therein. Consistent with National Instrument 43-101, resources are divided into “inferred,” “indicated” and “measured” based on the level of geological confidence in the mineralization, and reserves, into “probable” and “proven” upon at least a pre-feasibility study having been undertaken on the indicated and measured resources. Measured and indicated resources are inclusive of proven and probable reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability and are not guaranteed to have economic viability. Inferred resources are too speculative geologically to have any economic considerations applied to them that would allow a translation into reserves.
Cautionary Notes to U.S. Investors
The United States Securities and Exchange Commission (“SEC”) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. IAMGOLD uses certain terms in the Annual Report, such as “measured,” “indicated,” or “inferred,” which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in the IAMGOLD Annual Reports on Forms 40-F filed with the SEC.
Gold Mineral Reserves
100% BASIS
| PROVEN | PROBABLE | |||||
|---|---|---|---|---|---|---|
| As at December 31, 2015 | Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
| Rosebel1 | 58,949 | 1.0 | 1,972 | 11,273 | 1.0 | 379 |
| Essakane1 | – | – | – | 96,463 | 1.1 | 3,414 |
| Sadiola2 | – | – | – | 69,795 | 1.9 | 4,357 |
| Westwood3 | 744 | 7.5 | 180 | 1,718 | 7.6 | 418 |
| Total proven reserves | 59,693 | 1.1 | 2,152 | |||
| Total probable reserves | 179,249 | 1.5 | 8,568 | |||
| Total proven and probable reserves | 238,942 | 1.4 | 10,720 | |||
Attributable Reserves
| PROVEN | PROBABLE | |||||
|---|---|---|---|---|---|---|
| As at December 31, 2015 | Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
| Rosebel1 (95%) | 56,002 | 1.0 | 1,873 | 10,709 | 1.0 | 360 |
| Essakane1 (90%) | – | – | – | 86,817 | 1.1 | 3,073 |
| Sadiola2 (41%) | – | – | – | 28,616 | 1.9 | 1,786 |
| Westwood3 (100%) | 744 | 7.5 | 180 | 1,718 | 7.6 | 418 |
| Total proven reserves | 56,746 | 1.1 | 2,053 | |||
| Total probable reserves | 127,860 | 1.4 | 5,637 | |||
| Total proven and probable reserves | 184,606 | 1.3 | 7,690 | |||
* Mineral reserve tonnage, grade and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
Gold Mineral Resources
(Inclusive of Mineral Reserves)
100% BASIS
| MEASURED | INDICATED | INFERRED | |||||||
|---|---|---|---|---|---|---|---|---|---|
| As at December 31, 2015 | Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
| Rosebel1 | 136,502 | 1.0 | 4,262 | 63,140 | 1.0 | 2,056 | 22,481 | 0.9 | 635 |
| Essakane1 | – | – | – | 137,753 | 1.1 | 5,024 | 18,548 | 1.1 | 637 |
| Sadiola2 | 1,462 | 1.7 | 79 | 118,881 | 1.8 | 6,908 | 15,524 | 1.8 | 911 |
| Westwood3 | 466 | 12.7 | 190 | 1,450 | 11.8 | 549 | 7,546 | 11.3 | 2,747 |
| Côté Gold4 | – | – | – | 289,183 | 0.9 | 8,354 | 66,894 | 0.6 | 1,174 |
| Boto4 | – | – | – | 27,670 | 1.8 | 1,563 | 2,922 | 1.3 | 125 |
| Diakha-Siribaya4 | – | – | – | 2,102 | 1.9 | 129 | 19,816 | 1.7 | 1,092 |
| Pitangui4 | – | – | – | – | – | – | 4,252 | 5.0 | 679 |
| Total measured resources | 138,430 | 1.0 | 4,531 | ||||||
| Total indicated resources | 640,178 | 1.2 | 24,582 | ||||||
| Total measured and indicated resources5,6 | 778,608 | 1.2 | 29,113 | ||||||
| Total inferred resources | 157,983 | 1.6 | 8,000 | ||||||
Attributable Resources
| MEASURED | INDICATED | INFERRED | |||||||
|---|---|---|---|---|---|---|---|---|---|
| As at December 31, 2015 | Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
Tonnes (000) |
Grade (g/t) |
Contained Ounces (000) |
| Rosebel1 (95%) | 129,677 | 1.0 | 4,049 | 59,983 | 1.0 | 1,953 | 21,357 | 0.9 | 603 |
| Essakane1 (90%) | – | – | – | 123,978 | 1.1 | 4,522 | 16,693 | 1.1 | 573 |
| Sadiola2 (41%) | 599 | 1.7 | 32 | 48,741 | 1.8 | 2,832 | 6,365 | 1.8 | 374 |
| Westwood3 (100%) | 466 | 12.7 | 190 | 1,450 | 11.8 | 549 | 7,546 | 11.3 | 2,747 |
| Côté Gold4 (92.5%) | – | – | – | 267,494 | 0.9 | 7,727 | 61,877 | 0.6 | 1,086 |
| Boto4 (100%) | – | – | – | 27,670 | 1.8 | 1,563 | 2,922 | 1.3 | 125 |
| Diakha-Siribaya4 (50%) | – | – | – | 1,051 | 1.9 | 64 | 9,908 | 1.7 | 546 |
| Pitangui4 (100%) | – | – | – | – | – | – | 4,252 | 5.0 | 679 |
| Total measured resources | 130,742 | 1.0 | 4,271 | ||||||
| Total indicated resources | 530,367 | 1.1 | 19,211 | ||||||
| Total measured and indicated resources5,6 | 661,109 | 1.1 | 23,482 | ||||||
| Total inferred resources | 130,920 | 1.6 | 6,733 | ||||||
1 Rosebel and Essakane mineral reserves have been estimated as of December 31, 2015 using a $1,200/oz gold price and mineral resources have been estimated as of December 31, 2015 using a $1,500/oz gold price and have been estimated in accordance with NI 43-101.
2 Mineral reserves at Sadiola have been estimated as of December 31, 2015 using an average of $1,190/oz gold price and mineral resources have been estimated as of December 31, 2015 using a $1,400/oz gold price and have been estimated in accordance with JORC code.
3 Westwood mineral reserves have been estimated as of December 31, 2015 using a $1,200/oz gold price and mineral resources have been estimated as of December 31, 2015 using a 6.0 g/t Au cut-off over a minimum width of 2 metres and have been estimated in accordance with NI 43-101.
4 Côté Gold, Boto, Diakha-Siribaya and Pitangui mineral resources have been estimated as of December 31, 2015 using a $1,500/oz gold price and have been estimated in accordance with NI 43-101.
5 Measured and indicated gold resources are inclusive of proven and probable reserves.
6 In mining operations, measured and indicated resources that are not mineral reserves are considered uneconomic at the price used for reserves estimations, but are deemed to have a reasonable prospect of economic extraction.
* Mineral resource tonnage, grade and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
Gold Technical Information and Qualified Person/Quality Control Notes
The mineral resource estimates contained in this report have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The “Qualified Person” responsible for the supervision of the preparation and review of all resource and reserve estimates for IAMGOLD is Lise Chénard, Eng., Director, Mining Geology. Lise has worked in the mining industry for more than 30 years, mainly in operations, project development and consulting.
She joined IAMGOLD in April 2013 and acquired her knowledge of the Company’s operations and projects through site visits, information reviews and ongoing communication and oversight of mine site technical service teams or consultants responsible for resource and reserve modeling and estimation.
She is considered a “Qualified Person” for the purposes of NI 43-101 with respect to the mineralization being reported on. The technical information has been included herein with the consent and prior review of the above noted Qualified Person. The Qualified Person has verified the data disclosed, and data underlying the information or opinions contained herein.
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Click to access mining-sector.pdf
MESSAGE FROM THE MINISTER FOR MINES, LUC BLANCHETTE Québec: One of the world’s ten most attractive jurisdictions for mining investment In early 2015 the Fraser Institute released the results of its annual survey to identify the world’s most attractive jurisdictions for mining investment. Québec has made a spectacular move up this prestigious list, jumping from 18th in 2013 to 6th in 2014. We are very proud of this result. This is not a chance occurrence. If mining company executives around the world are looking at Québec, it is because all the conditions are now in place for responsible, profitable mining development in Québec. The Québec government is working hard to establish a stimulating and advantageous framework for investment. It has implemented its ambitious Plan Nord, a program for sustainable resource development in northern Québec in which mining plays a leading role. It is going ahead with its maritime strategy, which aims to strengthen Québec’s position as a hub for transatlantic trade, another key advantage for the growth of the mining industry. It has taken steps to promote mineral exploration, extend geo-scientific knowledge about the land base to reveal more of its immense mineral potential, stimulate research and development in the area of responsible mining development, and open up new perspectives for Québec’s mining industry. This document reviews the current situation of the mining sector and the conditions governing exploration and extraction in Québec. It highlights the broad range of mineral potential and the numerous advantages offered to investors in Québec. You will quickly understand why Québec is now one of the most attractive mining destinations in the world!
The province of Québec and its mining sector Québec is the largest federated State in Canada (1,667,441 km2 ), and has a population of 8.2 million inhabitants. Québec is strategically positioned, just northeast of the United States, near major population centres and industrial hubs. Europe and Asia are also easily accessible from Québec thanks to its deep-sea ports. Québec accounts for a fifth of Canada’s mineral production. It is the most diversified producer in Canada given its production and beneficiation of 15 metallic and 13 non-metallic minerals. This diversification will increase with the arrival of new mining projects for lithium, rare earths and phosphate, and the start-up of production at a diamond mine, slated for 2016. Québec has tremendous mineral potential, such that mineral resources for commodities already being mined may be replenished and new resources may be discovered for metals and mineral commodities that will be in demand in the years to come. The tax regime for companies in Québec is competitive, and its policies are stable and adapted. Investors can take advantage of a number of incentives when they come to Québec to do business.1 The latest survey from the Fraser Institute2 demonstrates investor interest in Québec, which ranks sixth among the world’s most attractive jurisdictions for mining investment. Infrastructure Québec is a major producer of electricity, as well as the fourth-largest hydropower generator in the world. Ninety-eight percent of this production comes from renewable sources. Québec offers investors green and renewable power, accessible over much of its territory through a reliable distribution network.3 Companies can also take advantage, based on their consumption, of highly competitive power rates. Québec has many deep-sea ports, including the port of Sept-Îles, the most important ore-shipping port in North America, which also offers a rail link to the New Québec Orogen (also called the Labrador Trough). Québec’s landmass is accessible via an extensive network of road, rail, maritime and air transportation infrastructure.4 Map 1 provides an overview of the latter. The Government of Québec has made it a priority to develop access to the vast expanse of land targeted under the Plan Nord, both in terms of transportation infrastructure (road, rail, maritime or air) and power supply infrastructure (hydroelectric power or natural gas). 1 http://www.investquebec.com/international/en/why-quebec/tax-incentives.html 2 http://www.fraserinstitute.org/research-news/display.aspx?id=22259 3 http://www.hydroquebec.com/majorcustomers 4 http://www.investquebec.com/international/en/why-quebec-transportation-infrastructure.html INVESTING IN QUÉBEC’S MINING SECTOR Photo: Richmont Mines Choosing Québec’s Mining Sector 2 October 2015 Map 1 – Transport infrastructure in Québec l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l p p p p p p p p p p p p p ! ! ! ! ! ! p ! ! ! ! ! ! ! ! Gaspé Québec Salluit Fermont Radisson Matagami Val-d’Or Montréal Saguenay Rimouski Gatineau La Tuque Sept-Îles Puvirnituq Sherbrooke Chibougamau Schefferville Rouyn-Noranda Trois-Rivières Thetford Mines Havre-Saint-Pierre Lebel-sur-Quévillon Sainte-Anne-des-Monts Île d’Anticosti Îles de la Madeleine Baie-Comeau Natashquan Blanc-Sablon Wemindji Quaqtaq Umiujaq Kuujjuaq Akulivik Chisasibi Kangiqsujuaq PRINCE EDOUARD ISLAND NOVA SCOTIA BAFFIN ISLAND NEWFOUNDLAND AND LABRADOR ONTARIO NEW BRUNSWICK UNITED STATES 1927 Boundary by the Privy Council (non definitive) 19 2 7 Boundary by ht e Pr vi y Cou ncil (non definitive) Hudson Strait Ungava Bay James Bay Labrador Sea St. Lawrence River Gulf of St. Lawrence Hudson Bay Atlantic Ocean Aupaluk Tasiujaq Ivujivik Inukjuak Eastmain Nemiscau Kangirsuk Mistissini Waskaganish Kuujjuarapik Whapmagoostui Kangiqsualujjuaq 55° 60° 60° 65° 65° 70° 70° 75° 80° 75° 60° 60° 55° 55° 50° 50° 45° 45° 0 150 km Legend Transport infrastructure Railroad Main network airport Energy transmission line Main Road l ! p p p Breakwater drop-off merchandise Port Deep-water port Dock Local airport Area covered by the Plan Nord Source: Ministère de l’Énergie et des Ressources naturelles Date: october 2015. October 2015 3 Choosing Québec’s Mining Sector Knowledge management The acquisition of new geoscience knowledge across Québec’s territory is vital for the development of its mining sector.5 In 2009, the government agreed to provide the Mining Heritage Fund with CA$200 million over a period of ten years. Of this amount, CA$120 million will be earmarked for geoscience knowledge acquisition. Québec also created the SIGÉOM6 database, which contains all the geoscience information collected over more than a century by the industry and the Ministère de l’Énergie et des Ressources naturelles. This database, accessible online through an interactive map, is widely acknowledged as one of the most comprehensive in the world. In Québec, mining titles are managed electronically and are accessible online through the GESTIM Plus7 application. This system provides real-time access to up-to-date data from the province’s public register of real and immovable mining rights. It can be used to map-designate new claims or renew existing claims, as well as pay the prescribed fees in a secure online environment. The Government of Québec encourages investments in research and development,8 as well as mineral processing activities within its borders.9 Workforce The quality of Québec’s workforce is recognized worldwide. As a long-time mineral producer, Québec has skilled workers in every administrative region, as well as a wide range of suppliers specializing in the mining sector, whether for mineral exploration, mining or mine site rehabilitation. More than 45,000 people in Québec work for the mining sector, either directly or indirectly10. There are a number of quality learning establishments in Québec that provide workforce training for the mining sector.11 In fact, Québec can count on an institution entirely dedicated to providing training for the mining sector: the Institut national des mines. 12 Community relations Québec encourages the establishment of a collaborative approach between members of the mining industry and the local and Aboriginal communities where mining activities take place. Some amendments were made to the Mining Act in December 2013 to this effect. In addition, Québec has already signed treaties with three First Nations (Cree, Inuit and Naskapi). Mining tax regime The corporate tax rate (combined federal/provincial rate) has been 26.9% since 2012, and the capital tax was abolished in January 2011. Québec’s tax regime also offers incentives for investments, processing activities within Québec, and for research and development13, including: A credit on duties refundable for losses, which allows mine operators to recover the tax value of certain exploration, deposit appraisal and mine development investments prior to production. The tax credit has been 16% since January 1st, 2012.14 A refundable tax credit for resources, which entitles companies to a refund of up to 31% of eligible exploration expenditures incurred in Québec. Québec’s flow-through share regime, through which individual investors may claim deductions of up to 120% of their investment cost.15 5 http://www.mern.gouv.qc.ca/english/publications/mines/strategy/mineral_strategy.pdf, page 14 6 sigeom.mrn.gouv.qc.ca/signet/classes/I1102_indexAccueil?l=a 7 gestim.mines.gouv.qc.ca/MRN_GestimP_Presentation/ODM02401_ie.aspx 8 http://www.investquebec.com/fr/index.aspx?page=336 9 http://www.budget.finances.gouv.qc.ca/budget/2014-2015a/fr/documents/Planbudgetaire.pdf 10 This includes mineral extraction activities, activities in support of mining operations, manufacturing of non-metallic mineral products, and primary processing of metals. 11 http://www.mern.gouv.qc.ca/english/publications/mines/strategy/mineral_strategy.pdf, page 22 12 http://www.inmq.qc.ca 13 http://www.invest-quebec.com/international/en/why-quebec/tax-incentives.html 14 http://www.mern.gouv.qc.ca/english/mines/fiscal/fiscal-regime-losses.jsp 15 http://www.mern.gouv.qc.ca/english/mines/fiscal/fiscal-incentives-shares.jsp Choosing Québec’s Mining Sector 4 October 2015 The mining tax regime was modified in 2014.16 The main new measures in effect since January 1st, 2014, are as follows: Establishment of a minimum mining tax at a rate of 1% to 4% of the gross output value at the mine shaft head; Introduction of progressive rates, ranging from 16% to 28%, used to determine the mining tax on annual profit, based on the company’s profit margin; Balance between the minimum mining tax and the mining tax based on profit — the higher of the two shall be paid by mining companies; Enhanced processing allowance, making it possible to exempt from tax the share of profits made by a mining company that is attributable to mineral processing. Mining companies can take advantage of higher deduction rates for their processing assets, and may exempt from tax up to 75% of their profits. Mining Act Québec has modern mining legislation that assures good tenure of mining titles. The Mining Act was amended in December 2013 to foster dialogue with communities, to encourage mineral processing in Québec, to promote environmental protection and to increase transparency. Among the key elements: Regional consultations held by the BAPE (Bureau d’audiences publiques sur l’environnement) 17 are required for all metal mining projects or metallic ore processing plants of more than 2,000 metric tonnes per day, and for all rare earth projects. For all other projects, regional consultations must be held by the mining company. A new chapter is devoted to consultations with Native communities. A Native Community Consultation Policy for the mining sector will also be published in the fall of 2016. Mine operators must set up a monitoring committee to foster the involvement of the local community in the project as a whole. The preparation of a scoping and market study for mineral processing in Québec is required before a mining lease is granted. Mine operators must submit their rehabilitation plan, which must be approved before a mining lease is granted. Since August 2013, mine operators must submit to the MERN a financial guarantee covering 100% of the anticipated rehabilitation costs for the entire mine site. To promote greater transparency, the quantity and value of extracted ores and the amount of royalties paid to the State by mining companies will be made public for each mine. The laws and regulations of Québec may be consulted free of charge online at Publications du Québec. 18
Increasing investments and creating value The Government of Québec is intent on making its corporate tax regime compare favourably with that of its trade partners. Québec wants to offer companies a climate that fosters investment and innovation. The government grants a ten-year tax holiday for large investment projects.19 This tax holiday applies to corporate income tax and contributions to the Health Services Fund. The government wants to quickly spur development north of the 49th parallel. Major investments will be made to support previous efforts undertaken under the Plan Nord, the most important being the creation of the fund Capital Mines Hydrocarbures. This fund will enable the government to acquire equity interests in companies that mine mineral substances in the domain of the State or that transform them, under certain conditions. It will have a budget allowance of CA$1 billion, half of which will be invested in the territory targeted by the Plan Nord. This budget does not include the CA$250 million allocated for the capitalization of Ressources Québec, the subsidiary of Investissement Québec dedicated to the mining and hydrocarbon sectors.20 Plan Nord In April 2015, the government unveiled Plan Nord Toward 2035 and its 2015–2020 action plan, a new version of the Plan Nord that presents an updated vision, guide and governance. The objectives of the Plan Nord are to develop the mining, forestry, energy, social, cultural and tourism aspects of the province’s land north of the 49th parallel, and to create jobs and wealth for all the people of Québec. By harmonizing the economic, social and environmental components, the Government of Québec hopes that Plan Nord will become a benchmark of responsible and sustainable northern development, and a unifying project for Québec society. The five-year 2015–2020 plan sets forth priority action in matters of development and well-being for local and Aboriginal communities, environmental protection and biodiversity conservation, and northern economic development. The latter includes the reinstatement of a promising climate for mining development by focusing on the diversity of resources. The Plan Nord sets forth actions that will facilitate access to the territory, whether by road, rail, sea or air, as well as actions to improve the telecommunications infrastructure and provide access to clean energy at competitive prices, particularly by installing a liquefied gas distribution network and developing innovative means of generating power, such as wind turbines and biomass fuels. In addition, the plan supports the expansion of scientific knowledge in the territory. Québec Mines convention Québec Mines21 is a major mining convention that takes place annually in the city of Québec. The convention covers all aspects of the mining industry: exploration, mining, processing and mine site rehabilitation. It is the largest mining convention in the French-speaking world. It allows experts from around the world to present the results of their research in exploration, mining or restoration, or in the fields of social acceptability or economics. Québec Mines, with its international reach, is an important meeting place and exchange platform between the province’s players in mining development and those from around the world. 19 http://www.revenuquebec.ca/en/salle-de-presse/nouvelles-fiscales/2013/2013-01-25.aspx 20 http://www.investquebec.com/quebec/fr/a-propos-de-nous/nos-filiales/ressources-quebec.html 21 http://www.quebecmines.gouv.qc.ca/english Choosing Québec’s Mining Sector 6 October 2015 Photo: Goldcorp OVERVIEW OF MINING ACTIVITIES IN QUÉBEC22 Québec is growing as a mine producer, particularly in terms of metal mines. With output accounting for one fifth of the total Canadian value, Québec is the most diversified mining producer in the country given its production and beneficiation of 15 metals and 13 non-metallic minerals. Among other commodities, Québec produces iron, precious metals, copper, nickel, zinc, feldspar, mica, salt, silica, architectural stone, peat and lime. Québec is one of the world’s few producers of niobium, titanium dioxide, cobalt and platinum. The province’s bedrock also harbours great potential for commodities such as graphite, lithium, diamonds, rare earths and tantalum. As of December 31, 2014, there were 155,031 active mining titles in Québec, representing a total surface area of 7.2 million hectares or 4.34% of the province. Mineral exploration and deposit appraisal expenditures reached CA$272 million in 2014, making up 650 different projects spread throughout the province. Exploration and deposit appraisal commitments for 2015 amount to nearly CA$379 million. Figure 1: Distribution of exploration and deposit appraisal expenditures by commodity, 2014. 6% 0.6% 5% 2% 0.5% 4% 8% 22% 14% 38% Others commodities Lithium Graphite Diamonds Uranium Rare earth elements Phosphate Base metals (copper, zinc, nickel) Ferrous metals Precious metals Source: Data from the Institut de la statistique du Québec 22 For more information, particularly for details on the mining regime and access within the province, consult http://www.mern.gouv.qc.ca/english/mines/index.jsp. The following annual publication provides a summary of mining activities in Québec and information on topical issues: http://www.mern.gouv.qc.ca/english/mines/ publications/publications-report.jsp Many statistics on the mining sector are also available at the following address: http://www.mern.gouv.qc.ca/mines/statistiques/index.jsp October 2015 7 Choosing Québec’s Mining Sector Total mining investments in Québec (exploration, deposit appraisal and mine complex development) reached a peak of $5.1 billion in 2012, reflecting significant growth since the early 2000s. In 2014, investments slowed but remained at relatively high levels. These investments are distributed throughout the province but are mainly concentrated in three large administrative regions: Abitibi-Témiscamingue, Côte-Nord and Nord-du-Québec. The value of Québec’s mineral shipments reached CA$8.7 billion in 2014. The principal commodities mined were iron, gold and silver, ilmenite (titanium), zinc, nickel and all types of stone. Figure 2: Distribution of mineral shipments by commodity, 2014. 35% 24% 7% 9% 3% 5% 8% 4% 1% 1% Others 3% Peat Lime Cement Titanium dioxide Stone Niobium Nickel Zinc and copper Precious metal Iron Source: Preliminary data from the Institut de la statistique du Québec In July 2015, there were 25 active mines in Québec and more than 350 establishments exploiting surface mineral substances (sand, gravel, peat and stone) (see map 2). And as of August 7, 2015, there are 657 different entities exploiting surface mineral substances according to the Registre public des droits miniers. The total number of active leases (BEX and BNE) is 2,348. Québec also has 16 primary processing plants for mining products and minerals (not including aluminum): two smelters (copper and titanium dioxide), two refineries (copper and zinc), one iron alloy plant (Niobec mine), one ferro-silicon plant, one metal silicon plant and nine plants for cement, lime and aluminous clay. In addition, as of July 2015, there are currently 26 mining projects at the deposit appraisal stage and three projects at the development stage (construction, start-up, ramp-up) across the province. Many of these projects could contribute to Québec’s mining diversity. These projects are for iron, gold and nickel, as well as for diamonds, lithium, phosphate, graphite and the rare earth elements (see map 3).23 Added to this are many exploration projects at various stages of advancement that will contribute to the province’s stream of new mining projects, mining operations and processing activities. In 2014, more than 650 exploration and deposit appraisal projects were being carried out by nearly 200 mining and mineral exploration companies. 23 These maps and many others are periodically updated: http://www.mern.gouv.qc.ca/english/mines/publications/publications-maps.jsp Choosing Québec’s Mining Sector 8 October 2015 Map 2 – Producing mines ! ! ! ! ! !( !( !(!(!( !( !( !( !( !( !( !( !( !( ) ) ) ) ) !( !( !( ) !( ) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Gaspé Québec Salluit Fermont Radisson Matagami Val-d’Or Montréal Saguenay Rimouski Gatineau La Tuque Sept-Îles Puvirnituq Sherbrooke Chibougamau Schefferville Rouyn-Noranda Trois-Rivières Thetford Mines Havre-SaintPierre Lebel-sur-Quévillon Sainte-Annedes-Monts Île d’Anticosti Îles de la Madeleine Baie-Comeau Natashquan Blanc-Sablon Wemindji Quaqtaq Umiujaq Kuujjuaq Akulivik Chisasibi Kangiqsujuaq PRINCE EDOUARD ISLAND NOVA SCOTIA BAFFIN ISLAND NEWFOUNDLAND AND LABRADOR ONTARIO NEW BRUNSWICK UNITED STATES 1927 Boundary by the Privy Council (non definitive) 19 2 7 Boundary by ht e Pr vi y Cou ncil (non definitive) Hudson Strait Ungava Bay James Bay Labrador Sea St. Lawrence River Gulf of St. Lawrence Hudson Bay Atlantic Ocean 2 6 3 1 5 4 9 23 22 25 24 21 20 19 17 12 10 18 55° 60° 60° 65° 65° 70° 70° 75° 80° 75° 60° 60° 55° 55° 50° 50° 45° 45° 0 150 km ! ! !( !( !(!( !( !( !(Val-d’Or Rouyn-Noranda 8 13 7 11 16 15 14 Area covered by the Plan Nord Producing mines !( 7- Beaufor (Richmont Mines) 8- Canadian Malartic (Canadian Malartic GP) 9- Casa Berardi (Hecla Québec) 10- Éléonore (Les Mines Opinaca) 11- Goldex (Agnico Eagle Mines) 12- Lac Bachelor (Metanor Resources) 13- Lac Herbin (QMX Gold Corporation) 14- Lapa (Agnico Eagle Mines) 15- Westwood (IAMGOLD Corporation) 16- LaRonde (Agnico Eagle Mines) !( !( !( 4- Nunavik Nickel (Canadian Royalties) 5- Raglan (Glencore Canada Corporation) !( 6- Niobec (Niobec) 17- Bracemac-McLeod (Glencore Canada Corp.) 18- Langlois (Nyrstar Canada Resources) Gold Gold, silver, copper, zinc Metallic Iron, iron and titanium Nickel, copper, PGE, cobalt Niobium 1- Fire Lake (ArcelorMittal Mining Canada) 2- Lac Tio (Rio Tinto Fer et Titane) 3- Mont-Wright (ArcelorMittal Mining Canada) !( Zinc, copper, gold, silver Non-metallic ) 19- Othmer (Dentsply Canada) 20- Lac-des-Îles (IMERYS Graphite & Carbone Canada) ) 21- Lac Letondal (IMERYS Mica Suzorite) ) 22- Mines Seleine (K+S Sel Windsor) Feldspar Graphite Mica Salt Silica 23- Petit-Lac-Malbaie (Silicium Québec) 24- Saint-Canut (Unimin Canada) 25- Saint-Rémi-d’Amherst (Société minière Gerdin) ) ) Source: SIGÉOM. Date: october 2015. ! ! ! ! ! [ [ [ [[[ [ [ [ [ [ [[ [ [ [ [ [ [ [ [ [ [ [ [ [ [ [ ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Gaspé Québec Salluit Fermont Radisson Matagami Val-d’Or Montréal Saguenay Rimouski Gatineau La Tuque Sept-Îles Puvirnituq Sherbrooke Chibougamau Schefferville Rouyn-Noranda Trois-Rivières Thetford Mines Havre-SaintPierre Lebel-sur-Quévillon Sainte-Annedes-Monts Île d’Anticosti Îles de la Madeleine Baie-Comeau Natashquan Blanc-Sablon Wemindji Quaqtaq Umiujaq Kuujjuaq Akulivik Chisasibi Kangiqsujuaq PRINCE EDOUARD ISLAND NOVA SCOTIA BAFFIN ISLAND NEWFOUNDLAND AND LABRADOR ONTARIO NEW BRUNSWICK UNITED STATES 1927 Boundary by the Privy Council (non definitive) 19 2 7 Boundary by the Pr vi y Cou ncil (non definitive) Hudson Strait Ungava Bay James Bay Labrador Sea St. Lawrence River Gulf of St. Lawrence Hudson Bay Atlantic Ocean 9 8 7 6 5 4 3 2 1 29 27 11 10 26 25 23 14 13 28 18 55° 60° 60° 65° 65° 70° 70° 75° 80° 75° 60° 60° 55° 55° 50° 50° 45° 45° 0 150 km ! ! [ [ [ [ [[ [ [ Val-d’Or[ Rouyn-Noranda 24 16 17 22 20 19 15 12 21 Area covered by the Plan Nord Mining projects Gold Phosphate 16- Akasaba Ouest (Agnico Eagle Mines) 17- Croinor Gold (Monarques Gold Corporation) 18- Douay Ouest (Aurvista Gold Corporation) 19- Elder (Mines Abcourt) 20- Fayolle (Hecla Québec) 21- Granada (Gold Bullion Development Corp.) 22- Lac Pelletier (QMX Gold Corporation) 23- Lac Windfall (Eagle Hill Exploration Corporation) 24- Lamaque Sud (Integra Gold Corporation) 25- Arnaud (Mine Arnaud) 26- Lac à Paul (Arianne Phosphate) Lithium Iron, iron and titanium, vanadium 12- Authier (Glen Eagle Resources) 13- Rose Tantale-Lithium (Critical Elements Corp.) 14- Whabouchi (Nemaska Lithium) 2- BlackRock (BlackRock Metals) 3- DSO (Tata Steel Minerals Canada) 4- Fire Lake North (Champion Iron) 5- Full Moon – Sunny Lake (Wisco Century Sunny Lake Iron Mines) 6- Hopes Advance (Oceanic Iron Ore Corporation) 7- Lac Otelnuk (Lac Otelnuk Mining) 8- Lamêlée (Lamêlée Minerais de Fer) 9- Taconite – KéMag (New Millennium Iron Corp.) Nickel, copper 15- Dumont Nickel (Royal Nickel Corporation) Rare earths 27- Ashram (Eldor) (Commerce Resources Corp.) 28- Kipawa (Zeus) (Matamec Explorations) 29- Strange Lake / B-Zone (Quest Rare Minerals) Diamond 1- Renard (Stornoway Diamond Corporation) Graphite 10- Lac Guéret (Mason Graphite) 11- Lac Knife (Focus Graphite) [ [ [ [ [ [ [ [ October 2015 9 Choosing Québec’s Mining Sector Map 3 – Major projects in advanced phase Source: SIGÉOM. Date: october 2015. Choosing Québec’s Mining Sector 10 October 2015 GEOLOGICAL POTENTIAL OF QUÉBEC Almost 90% of Québec’s bedrock is composed of Precambrian rocks belonging to the Canadian Shield (north of the Saint Lawrence River). The remainder consists essentially of Paleozoic rocks: the St. Lawrence Platform surrounding the Saint Lawrence River and the Appalachians to the south of the river. These geological environments offer significant discovery potential for mineral deposits. Québec is divided into seven main geological provinces: Superior, Nain, Churchill, Grenville, Appalachian, St. Lawrence Platform and Hudson Bay Platform. These are illustrated on map 4. The Superior Province (4.3 to 2.5 billion years [Ga]) occupies a large part of the North American continent and also covers half of Québec, for a total surface area of 750,000 km². It is known around the world for its numerous gold, copper, zinc, nickel and silver deposits. The Superior Province is subdivided into a dozen subprovinces, half of them in Québec. The most well known is the Abitibi Subprovince, which is also the most extensive Archean volcano-sedimentary belt in the world, and famous for its gold, copper, zinc and silver deposits. The Nain Province (3.8 to 1.3 Ga) is found mostly in Labrador, with only a small portion (about 60 km²) extending into the Torngat Mountains of Québec. It is composed of Archean metamorphic rocks. The Churchill Province (2.9 to 1.1 Ga) covers an area of about 200,000 km² in the northern part of Québec, to the north and northeast of the Superior Province. It is characterized by four distinct geological zones: the Ungava Orogen (Ungava Trough), known for its nickel-copper deposits; the New Québec Orogen (Labrador Trough), which hosts massive iron deposits as well as many copper, nickel and platinum group element (PGE) deposits; the Core Zone (formerly known as the Rae Province), located between the Labrador Trough and the Torngat Orogen, is composed of Archean and Paleoproterozoic rocks (2.9 to 1.75 Ga) as well as Mesoproterozoic plutonic rocks (1.7 to 1.1 Ga); the Torngat Orogen (2.1 to 1.75 Ga), located east of the Core Zone, where rocks are injected by kimberlites with diamond potential. The Grenville Province (2.7 Ga to 600 million years [Ma]) covers an area of 600,000 km². It forms the southeast limit of the Superior Province and is divided into two parts: the parautochthonous and allochthonous belts. The Grenville Province is known for its iron and ilmenite mines and for its industrial mineral potential.
The Appalachian Province (600 to 300 Ma) developed along the edge of the Canadian Shield during the Paleozoic, and covers an area of roughly 80,000 km2 . It is divided into three distinct zones: 1) the Humber Zone, 2) the Dunnage Zone, and 3) the Gaspé Belt. It is bounded to the east by the Permo-Carboniferous Magdalen Basin. In Québec, the Appalachians were affected by two main tectonic events: the Taconian and Acadian orogenies. The Mines Gaspé copper deposits are found in this geological province. The St. Lawrence Platform (570 to 430 Ma) developed at the end of the Proterozoic and during the Paleozoic, with the formation of the Saint Lawrence rift. It covers an area of more than 30,000 km2 and overlies rocks of the Grenville Province. It is divided into two distinct platforms: the St. Lawrence Lowlands Platform and the Anticosti Platform. The main resource is limestone. Two carbonatite intrusions, Saint-Honoré (Grenville Province) and Oka (St. Lawrence Platform), host niobium deposits. Québec is the world’s secondlargest producer of this rare metal. The Hudson Bay Platform (450 to 410 Ma) covers an area of roughly 5,500 km2 in Québec just south of James Bay. It is composed of Paleozoic sedimentary rocks with a similar composition to those found in the St. Lawrence Platform.
Exploration and potential In addition to exploration projects that focus exclusively on iron, Québec also has exploration projects for iron, titanium, vanadium and chromium. The province’s iron potential remains very high, as shown by several projects at the exploration or appraisal stage. All the proponents are hoping the iron market will improve. CHOOSE QUÉBEC’S MINING SECTOR – IRON PROJECTS (1) Mine or project Status Commodities Proven and Probable Reserves (2, 3) Measured and Indicated Resources (2, 3) Type(4) Comments Fire Lake ArcelorMittal Mining Canada http://www.arcelormittal.com Active mine Iron 217.00 Mt at Fe: 33.497% 250.00 Mt at Fe: 32.246% OP The resources do not include reserves. Ore is processed at the MontWright site. Lac Tio Rio Tinto Fer et Titane http://www.rtft.com Active mine Ilmenite 121.00 Mt at TiO2 : 40% 11.10 Mt at TiO2 : 40% OP The resources do not include reserves. Expected production for 2015: ~2 Mt/yr of ilmenite ore. Work is underway to extend mining until 2050. Mont-Wright ArcelorMittal Mines Canada http://www.arcelormittal.com Active mine Iron 1,912.00 Mt at Fe: 28.083% 2,264.00 Mt at Fe: 29.087% OP The resources do not include reserves. Expected production for 2015: 24 Mt/yr of iron concentrate at 65–67% Fe. DSO Tata Steel Minerals Canada Development Iron 64.11 Mt at Fe: 58.87% 98.90 Mt at Fe: 59.307% OP The resources do not include reserves. Production: the processing plant must be operational in 2015. 6 Mt/yr of iron concentrate in the years to come. BlackRock BlackRock Metals http://www.blackrockmetals.com Appraisal Iron Ilmenite Vanadium 405.15 Mt at Fe: 19.46% TiO2 : 7.048% 465.60 Mt at Fe: 25.417% TiO2 : 6.855% V2 O5 : 0.4% OP The resources do not include reserves. The proponent is reassessing the project. A new feasibility study is pending. Fire Lake North Champion Iron http://www.championironmines.com Appraisal Iron 464.59 Mt at Fe: 32.364% 755.30 Mt at Fe: 31.568% OP A feasibility study is underway. The resources do not include reserves. Expected production: 10 Mt/yr of iron concentrate. Full Moon – Sunny Lake Wisco Century Sunny Lake Iron Mines http://www.centuryiron.com Appraisal Iron 7,259.60 Mt at Fe: 30.18% OP A preliminary economic assessment was published in April 2015. Expected production: 20 Mt/yr of iron concentrate. Hopes Advance Oceanic Iron Ore Corp. http://www.oceanicironore.com Appraisal Iron 1,359.27 Mt at Fe: 32.212% 1,388.0 Mt at Fe: 32.112% OP A feasibility study is underway. The resources do not include reserves. Expected production: 10 Mt/yr of iron concentrate. Lac Otelnuk Lac Otelnuk Mining http://www.adrianaresources.com Appraisal Iron 4,993.00 Mt at Fe: 28.688% 20,640.00 Mt at Fe: 29.772% OP A feasibility study was published in April 2015. The resources include reserves. Expected production: 30 Mt/yr of iron concentrate. Lamêlée Lamêlée Minerais de Fer http://www.lameleeiron.com Appraisal Iron Fe: 29.49% OP A preliminary economic assessment was published in January 2014. Expected production: 5 Mt/yr of iron concentrate. Taconite-KéMag New Millennium Iron Corp. http://www.nmliron.com Appraisal Iron 2,384.00 Mt at Fe: 30.664% 2,383.00 Mt at Fe: 31.634% A feasibility study was published in May 2014. The resources include reserves. Expected production: 22 Mt/yr of iron concentrate. (1) Includes Ti, V and P projects; non exhaustive list; refer to the MERN’s Report on Mining Activities for the complete list (www.mern.gouv.qc.ca/english/mines/ publications/publications-report.jsp) (2) Mineral reserves and mineral resources are reported according to NI 43-101 standards; note: mineral resources do not have demonstrated economic viable
Notable mining projects The province has one mining project at the development stage (construction and commission) in the AbitibiTémiscamingue region. The Elder project of Abcourt Mines should attain commercial production before the end of this year. Abcourt Mines expects to produce 715 Kg (23 000 oz) per year over eleven years. The province has eight projects at the deposit appraisal stage: Lamaque South (Integra Gold Corp.), Windfall Lake (Eagle Hill Exploration Corporation), Douay West (Aurvista Gold Corporation), Lac Pelletier (QMX Gold Corporation), Akasaba West (Agnico Eagle Mines), Fayolle (Hecla Québec), Granada (Gold Bullion Development Corp.) and Croinor Gold (Monarques Gold Corporation).
In October 2014, Integra Gold Corp. acquired Sigma and Lamaque mine sites adjacent to its Lamaque South project. The mine site includes the Sigma processing plant. This transaction transferred several environmental permits to Integra, which allowed the company to advance the project more rapidly. As for the Granada project of Gold Bullion Development Corp., the company is waiting for a certificate of authorization from the Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) in order to start production. Québec is a major gold producer and has been for many years. The renewal of mineral resources and the emergence of new gold projects will allow the province to produce gold for a long time to come. Exploration and potential Exploration for gold remains the primary focus for several dozen projects underway in Québec. The projects are held by majors and by juniors from Québec and Canada. The main exploration targets are near known mining camps or active mines, such as the trend associated with the Cadillac-Larder Lake Fault, exploration below the Horne smelter and in the vicinity of the Éléonore mine in the James Bay region. Exploration was successful in other regions and may pave the way for new mine development projects. Notable areas include Lac Grasset (northwest of Matagami), Urban-Barry and Lac Windfall areas (south of Lebel-sur-Quévillon) and Lac Des-Vents (southwest of Chibougamau)
Lebel-sur-Quévillon) and Lac Des-Vents (southwest of Chibougamau). CHOOSE QUÉBEC’S MINING SECTOR – GOLD PROJECTS(1) Mine or project Status Commodities Proven and Probable Reserves (2, 3) Measured and Indicated Resources (2, 3) Type(4) Comments Beaufor Richmont Mines http://www.richmont-mines.com Active mine Gold 0.14 Mt at Au: 7.06 g/t 0.91 Mt at Au: 6.44 g/t UG The resources do not include reserves. Expected production in 2015: 1,030 to 1,150 kg of gold. Canadian Malartic Canadian Malartic GP http://www.canadianmalartic.com Active mine Gold 263.20 Mt at Au: 1.072 g/t 250.80 Mt at Au: 1.123 g/t OP The resources do not include reserves. Expected production in 2015: 17,400 kg of gold. Casa Berardi Hecla Québec http://www.hecla-mining.com Active mine Gold 9.04 Mt at Au: 4.746 g/t 11.88 Mt at Au: 3.732 g/t UG The resources do not include reserves. Expected production in 2015: 4,000 kg of gold. Éléonore Les Mines Opinaca http://www.goldcorp.com Active mine Gold 24.57 Mt at Au: 6.296 g/t 5.19 Mt at Au: 6.336 g/t UG The resources do not include reserves. Expected production in 2015: between 9,000 and 9,600 kg of gold. Goldex Agnico Eagle Mines http://www.agnicoeagle.com Active mine Gold 7.60 Mt at Au: 1.52 g/t 30.10 Mt at Au: 1.96 g/t UG The resources do not include reserves. Expected production in 2015: 3,100 kg of gold. Lac Bachelor Metanor Resources http://www.metanor.ca Active mine Gold 0.84 Mt at Au: 7.381 g/t 0.84 Mt at Au: 7.79 g/t UG The resources do not include reserves. Expected production in 2015: 1,500 kg of gold. Lac Herbin QMX Gold Corporation http://www.alexisminerals.com Active mine Gold n.d. n.d. UG Expected production in 2015: ±150 to 200 kg of gold. Closure planned for 2015. Lapa Agnico Eagle Mines http://www.agnicoeagle.com Active mine Gold 1.47 Mt at Au: 5.968 g/t 1.55 Mt at Au: 4.28 g/t UG The resources do not include reserves. Expected production in 2015: 2,300 kg of gold. LaRonde Agnico Eagle Mines http://www.agnicoeagle.com Active mine Gold Zinc Copper Lead Silver 24.13 Mt at Au: 5 g/t Zn: 0.668% Cu: 0.25% Pb: 0.04% Ag: 19.584 g/t 4.24 Mt at Au: 2.12 g/t Zn: 1.61% Cu: 0.16% Pb: 0.16% Ag: 32.53 g/t UG The resources do not include reserves. Expected production in 2015: 7,600 kg of gold, 43,000 kg of silver, 7,600 tonnes of zinc in a concentrate, 5,000 tonnes of copper in another concentrate. Westwood IAMGOLD Corporation http://www.iamgold.com Active mine Gold 1.59 Mt at Au: 9.979 g/t 1.29 Mt at Au: 12.899 g/t UG The resources do not include reserves. Expected production in 2015: between 3,400 and 4,000 kg of gold. October 2015 19 Choosing Québec’s Mining Sector CHOOSE QUÉBEC’S MINING SECTOR – GOLD PROJECTS(1) Mine or project Status Commodities Proven and Probable Reserves (2, 3) Measured and Indicated Resources (2, 3) Type(4) Comments Elder Abcourt Mines http://www.abcourt.com Development Gold 1.18 Mt at Au: 6.578 g/t UG At the production start-up stage since October 2013. Has not yet attained commercial production. Expected production: 780 kg/yr of gold per year. Akasaba West Agnico Eagle Mines http://www.agnicoeagle.com Appraisal Gold Copper 8.10 Mt at Au: 0.77 g/t Cu: 0.44% OP Expected production: 1,000 kg of gold per year. Croinor Gold Monarques Gold Corporation http://www.monarquesresources.com Appraisal Gold 0.54 Mt at Au: 6.774 g/t 0.68 Mt at Au: 9.089 g/t UG The prefeasibility study is finished (October 2014). The resources do not include reserves. Expected production: between 600 and 1,200 kg of gold per year. Douay Ouest Aurvista Gold Corporation http://www.aurvistagold.com Appraisal Gold 2.56 Mt at Au: 2.77 g/t OP/UG The preliminary economic assessment is finished (January 2015). Expected production: 1,200 kg of gold per year. Fayolle Hecla Québec http://www.hecla-mining.com Appraisal Gold 0.55 Mt at Au: 5.75 g/t OP The preliminary economic assessment is finished (March 2013). Scenarios for open pit or underground mining. Expected production: 1,000 kg of gold per year. Granada Gold Bullion Development Corp. http://www.goldbulliondevelopmentcorp.com Appraisal Gold 0.57 Mt at Au: 4.239 g/t 0.52 Mt at Au: 5.263 g/t OP The prefeasibility study is finished for the open pit component (June 2014). Underground resources are not reported here. The resources do not include reserves. Expected production: 745 kg of gold per year. Lac Pelletier QMX Gold Corporation http://www.alexisminerals.com Appraisal Gold 0.17 Mt at Au: 6.458 g/t 0.28 Mt at Au: 8.608 g/t UG The feasibility study is finished (June 2010). The resources include reserves. Expected production: 1,050 kg of gold per year; life-of-mine expected to be one year. Lac Windfall Eagle Hill Exploration Corporation http://www.eaglehillexploration.com Appraisal Gold 1.50 Mt at Au: 9.63 g/t UG The preliminary economic assessment is finished (June 2015). Expected production: 3,300 kg of gold per year. Lamaque Sud Integra Gold Corp. http://www.integragold.com Appraisal Gold 2.84 Mt at Au: 7.2 g/t UG The preliminary economic assessment is finished (March 2015). Expected production: 3,400 kg of gold per year. (1) Non exhaustive list; refer to the MERN’s Report on Mining Activities for the complete list (www.mern.gouv.qc.ca/english/mines/publications/publications-report.jsp) (2) Mineral reserves and mineral resources are reported according to NI 43-101 standards; note: mineral resources do not have demonstrated economic viability and there is no certainty that resources will be converted into reserves, either in whole or in part. (3) Mt: million metric tons, g/t: gram per metric ton. (4) OP: open pit, UG: underground. Choosing Québec’s Mining Sector 20 October 2015 Gold – Mines and mining projects XW XW XW XW XWXW XW XW XWXW XW XW XW XW XW XWXWXW XWXWXWXWXWXWXWXWXWXWXWXWXWXW XWXWXWXW XWXWXWXWXW XW XW XWXWXWXWXWXWXWXWXWXWXWXW XW XWXW XW XW XW XWXW XWXWXWXWXW XWXWXWXWXWXWXWXWXW XW XW XWXWXWXWXWXW XW XWXW XW XW XWXWXWXWXW XW XW XWXW XW XWXW XW XW XW XW XW XW XW XWXWXWXW XWXW XW XW XWXW XW XWXWXW XWXWXW XWXW XW XW XWXWXWXWXW XW XWXW XW XW XW XW ! ! ! ! ! ) ))) ))) )))) ) ) ))) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )) ) ) ) ) !( !( !(!(!( [ [[[ !( !( !( !( [!([ [ [ ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Gaspé Québec Salluit Fermont Radisson Matagami Val-d’Or Montréal Saguenay Rimouski Gatineau La Tuque Sept-Îles Puvirnituq Sherbrooke Chibougamau Schefferville RouynNoranda Trois-Rivières Thetford Mines Havre-SaintPierre Lebel-sur-Quévillon Sainte-Annedes-Monts Île d’Anticosti Îles de la Madeleine Baie-Comeau Natashquan Blanc-Sablon Wemindji Quaqtaq Umiujaq Kuujjuaq Akulivik Chisasibi Kangiqsujuaq PRINCE EDOUARD ISLAND NOVA SCOTIA BAFFIN ISLAND NEWFOUNDLAND AND LABRADOR ONTARIO NEW BRUNSWICK UNITED STATES 1927 Boundary by the Priv y Coun cil (non def ni itive) 1927 Boundary by the Privy Council (non definitive) Hudson Strait Ungava Bay James Bay Labrador Sea St. Lawrence River Gulf of St. Lawrence Hudson Bay Atlantic Ocean 6 4 3 18 14 55° 60° 60° 65° 65° 70° 70° 75° 80° 75° 60° 60° 55° 55° 50° 50° 45° 45° 0 150 km XW XW XWXWXW XWXW XW XWXW XW XW XW XW XW XW XW XW XW XW XW XW XW XWXW XW XW XWXW XW XWXW XW XW XW XW XW XW XW XW XWXW XWXWXW XWXWXW XWXW XWXW XWXW XW XW XW XW XW XWXW XWXW XW XW XWXW XW XW XW XW XW XW XWXW XWXWXWXW XW XW XWXWXW XW XW XW XW XW XW XW XW XW XWXW XW XW XW XWXWXW XW XWXWXW XW ) ) ) ) ) ) ) ) ) )) ) ) ) ) ) ) ) ) ) ) )) ) !( ) !( !(!( [ [ [[ !( !( !([[ [ ! ! Val-d’Or Rouyn-Noranda 7 5 1 9 8 2 19 13 12 17 16 15 11 10 Area covered by the Plan Nord Legend 1- Beaufor (Richmont Mines) 2- Canadian Malartic (Canadian Malartic GP) 3- Casa Berardi (Hecla Québec) 4- Éléonore (Les Mines Opinaca) 5- Goldex (Agnico Eagle Mines) 6- Lac Bachelor (Metanor Resources) 7- Lac Herbin (QMX Gold Corporation) 8- Lapa (Agnico Eagle Mines) 9- LaRonde (Agnico Eagle Mines) 10- Westwood (IAMGOLD Corporation) 12- Akasaba Ouest (Agnico Eagle Mines) 13- Croinor Gold (Monarques Gold Corporation) 14- Douay Ouest (Aurvista Gold Corporation) 15- Fayolle (Hecla Québec) 16- Granada (Gold Bullion Development Corp.) 17- Lac Pelletier (QMX Gold Corporation) 18- Lac Windfall (Eagle Hill Exploration Corp.) 19- Lamaque Sud (Integra Gold Corporation) Producing mines – Gold Mining projects – Gold !( [ ) Exploration projects – Gold* XW Deposits (historical resources)** 11- Elder (Mines Abcourt) [ Mining project in construction – Gold * Exploration projects with NI 43-101 resources published between 2009 and 2014. ** Source: SIGÉOM. October 2015 21 Choosing Québec’s Mining Sector Gold – Exploration projects XW XW XW XW XWXW XW XW XWXW XW XW XW XW XW XWXWXW XWXWXWXWXWXWXWXWXWXWXWXWXWXW XWXWXWXW XWXWXWXWXW XW XW XWXWXWXWXWXWXWXWXWXWXWXW XW XWXW XW XW XW XWXW XWXWXWXWXW XWXWXWXWXWXWXWXWXW XW XW XWXWXWXWXWXW XW XWXW XW XW XWXWXWXWXW XW XW XWXW XW XWXW XW XW XW XW XW XW XW XWXWXWXW XWXW XW XW XWXW XW XWXWXW XWXWXW XWXW XW XW XWXWXWXWXW XW XWXW XW XW XW XW ! ! ! ! ! !( !( !(!(!( [ [[[ !( !( !( !( [!([ [ [ ) ))) ))) )))) ) ) ))) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )) ) ) ) ) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Gaspé Québec Salluit Fermont Radisson Matagami Val-d’Or Montréal Saguenay Rimouski Gatineau La Tuque Sept-Îles Puvirnituq Sherbrooke Chibougamau Schefferville RouynNoranda Trois-Rivières Thetford Mines Havre-SaintPierre Lebel-sur-Quévillon Sainte-Annedes-Monts Île d’Anticosti Îles de la Madeleine Baie-Comeau Natashquan Blanc-Sablon Wemindji Quaqtaq Umiujaq Kuujjuaq Akulivik Chisasibi Kangiqsujuaq PRINCE EDOUARD ISLAND NOVA SCOTIA BAFFIN ISLAND NEWFOUNDLAND AND LABRADOR ONTARIO NEW BRUNSWICK UNITED STATES 1927 Boundary by the Priv y Coun cil (non def ni itive) 1927 Boundary by the Privy Council (non definitive) Hudson Strait Ungava Bay James Bay Labrador Sea St. Lawrence River Gulf of St. Lawrence Hudson Bay Atlantic Ocean 3 7 8 6 2 24 35 27 18 14 22 13 55° 60° 60° 65° 65° 70° 70° 75° 80° 75° 60° 60°
PRODUCING GOLD MINES
Beaufor (Richmont Mines) 2- Canadian Malartic (Canadian Malartic GP) 3- Casa Berardi (Hecla Québec) 4- Éléonore (Les Mines Opinaca) 5- Goldex (Agnico Eagle Mines) 6- Lac Bachelor (Metanor Resources) 7- Lac Herbin (QMX Gold Corporation) 8- Lapa (Agnico Eagle Mines) 9- LaRonde (Agnico Eagle Mines) 10- Westwood (IAMGOLD Corporation) 12- Akasaba Ouest (Agnico Eagle Mines) 13- Croinor Gold (Monarques Gold Corporation) 14- Douay Ouest (Aurvista Gold Corporation) 15- Fayolle (Hecla Québec) 16- Granada (Gold Bullion Development Corp.) 17- Lac Pelletier (QMX Gold Corporation) 18- Lac Windfall (Eagle Hill Exploration Corp.) 19- Lamaque Sud (Integra Gold Corporation) Producing mines – Gold Mining projects – Gold !
Producing mines
– Gold Mining projects –
Gold !( [ ) Exploration projects – Gold* XW Deposits (historical resources)** 1- Akasaba (Alexandria Minerals Corporation) 2- Barry (Metanor Resources) 3- Bellechasse (Timmins) (Golden Hope Mines) 4- Bloc Marban (Niogold Mining Corporation) 5- Bousquet (Agnico Eagle Mines) 6- Chevrier (Tawsho Mining) 7- Comtois (Osbell) (Maudore Minerals) 8- Corner Bay (Minéraux CB) 9- Destiny (Alto Ventures) 10- Duparquet (Ressources Clifton Star) 11- Duquesne (Clifton Star Resources) 12- Duquesne Ouest (Duparquet Assests) 13- Eastern Extension (BonTerra Resources) 14- Eau Claire (Eastmain Resources) 15- Ellisson (Agnico Eagle Mines) 16- Francoeur (Richmont Mines) 17- Galloway (Vantex Resources) 18- Géant Dormant (Aurbec Mines) 19- Horne 5 (Falco Resources) 20- Joanna (Hecla Québec) 21- Kiena (Wesdome Gold Mines) 22- Lac Chibougamau (Chibougamau independent Mines) 23- Lapaska (Adventure Gold) 24- Lavoie (Areva/SOQUEM) 25- New Alger (Ressources Renforth) 26- O’Brien-Kewagama (Radisson Mining Resources) 27- Opémisca (Explorateurs-Innovateurs de Québec) 28- Pitt Gold (Brionor Resources) 29- Rocmec 1 (Nippon Dragon Resources) 30- Rouyn (Yorbeau Resources) 31- Simkar (Monarques Gold Corporation) 32- Sleepy (Alexandria Minerals Corporation) 33- Stadacona-Est (Visible Gold Mines) 34- Val d’Or Est (Adventure Gold) 35- Vezza (Aurbec Mines) 36- Wasamac (Richmont Mines) 37- Zone Jeffrey (Malartic CHL) (Canadian Malartic Corporation)
Diamonds MINING PROJECTS Photo: Stornoway Diamond Corporation Current situation The global market for diamonds is growing rapidly. Prices have risen significantly over the last few years and the outlook is positive. Canada’s position in the market (production and processing) is becoming increasingly important. Although Québec is not yet a diamond producer, it may become one in the near future. Notable mining projects The Renard diamond project, owned by Stornoway Diamonds Corporation, is promising. The feasibility study, published in 2011, reports mining reserves capable of providing for 11 years of production. The initial investment for production is estimated at about CA$1.034 billion. Construction of the mine started on July 10, 2014, and is still underway. Start-up is expected by the end of 2016, and commercial production should commence in the first quarter of 2017. The mine will create about 450 jobs. Exploration and potential The diamond potential of Québec remains relatively underexplored. Diamonds are generally found in kimberlites that were emplaced in thick ancient cratons such as those of the Superior Province. The opening of a diamond mine could revive exploration activities in all areas identified as favourable following exploration efforts in the early 2000s. CHOOSE QUÉBEC’S MINING SECTOR – DIAMOND PROJECTS (1) Mine or project Status Commodity Proven and Probable Reserves (2, 3) Measured and Indicated Resources (2, 3) Type(4) Comments Renard Stornoway Diamond Corporation http://www.stornowaydiamonds.com Development Diamond 23.79 Mt at 0.755 c/t 35.45 Mt at 0.764 c/t OP/UG The resources do not include reserves. Construction is underway. Expected production: 1.6 M carats per year. (1) Non exhaustive list; refer to the MERN’s Report on Mining Activities for the complete list (www.mern.gouv.qc.ca/english/mines/publications/publications-report.jsp) (2) Mineral reserves and mineral resources are reported according to NI 43-101 standards; note: mineral resources do not have demonstrated economic viability
Mining project – Diamond Renard (Stornoway Diamond Corp.)
Other metals Photo: Agnico Eagle Mines Current situation In Québec, small quantities of certain metals are produced during the refining of zinc and copper, or are extracted as by-products during gold or base metal mining operations. Although the production of these substances is generally on a small scale, it once again demonstrates the diversity of Québec’s mineral. SHIPMENTS OF OTHER METALLIC MINERALS FROM QUÉBEC, 2014 Commodity Quantity Value (k$) Antimony (t) 6 c Bismuth (t) 3 86 Cadmium (t) c 199 Selenium (t) 30 1,879 Tellurium (t) 2 257 c: confidential information Source: Preliminary data from the Institut de la statistique du Québec and Natural Resources Canada The supply of some of these metals is considered strategic by many nations (for example, the USA, Japan, South Korea, the European Union) because they are required by industries such as aeronautics, electronics, green energies and high technology. These metals include the rare earths, lithium, niobium, tantalum and graphite. Both mining and exploration projects in Québec could benefit from the interest of these nations for such metals. Québec can offer a stable supply of several of these metals. It is already the second largest producer of niobium in the world, the third for titanium dioxide, and among one of the few graphite producers. Lithium may also, in the near future, be added to this list. There is also considerable potential in Québec for mineral deposits containing antimony, bismuth, cadmium, lead, selenium and tellurium. In the near future, advances in geoscientific knowledge and increased exploration efforts, particularly north of the 49th parallel, could lead to the discovery of new mineralization containing these metals.
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A good context for processing activities Québec wants to increase the processing of mineral substances within its borders and can count on some interesting advantages to do so, namely its location just northeast of the United States, its mineral potential, its infrastructure, its workforce, and its clean electric power-generation capacity. The Government of Québec offers an investment tax credit for manufacturing and processing equipment. Depending on the type of investment project, it may also offer competitive power rates. The processing allowance provided for in the Mining Tax Act is intended to encourage mining companies to perform processing and transformation activities within Québec, such as concentration, smelting, refining, hydrometallurgy, pelletizing, and the production of steel powder and billets, copper cathodes and zinc ingots. The processing allowance was enhanced in January 201432, when the new mining tax regime came into effect. Here are a few examples of metal manufacturing and processing activities currently taking place in Québec. The Horne smelter produces primary copper anodes, which are refined by Affinerie CCR into high-purity copper cathodes. These anodes, primary processing products, are sold worldwide, namely in the United States, although some are also processed in Québec. Copper cathodes produced at the CCR refinery are transformed into wire rod, which is in turn transformed into copper winding wire destined for converter, generator and traction motor manufacturers in Québec, Ontario and the United States. In Québec, 144 companies manufacture copper parts or offer copper lining, plating, machining, or polishing services. Primary zinc produced by the CEZ refinery is namely used to make alloys (brass and bronze), but also for galvanizing. In Québec, 123 manufacturing companies use zinc. Rio Tinto Fer et Titane (RTFT) produces, from ilmenite, titaniferous slag used to manufacture titanium pigment, used as an opacity agent in paint (to get a white colour). It is also used to make Oreo cookies. RTFT also produces pig iron that is sold in part to manufacture iron castings; a significant proportion of this pig iron is used to make steel, and part of the pig iron and steel is transformed into powdered metal mainly destined for the automobile industry. Steel billets produced by RTFT are transformed into wire rod, which is used to manufacture, in Québec, steel wire, nuts and bolts. RTFT’s steel billets are also sold to the petroleum industry, which use them to manufacture needed parts. ArcelorMittal Montréal produces steel from iron pellets namely derived from the Mont-Wright mine in Fermont, and from scrap metal. Steel billets are transformed into steel bars and wire destined for North American markets, namely for the construction and automobile industries. According to a directory published by the Centre de recherche industrielle du Québec (CRIQ), more than 2,000 companies manufacture steel products in Québec. 32 http://www.finances.gouv.qc.ca/documents/autres/fr/AUTFR_NouveauRegimeImpotMinier.pdf October 2015 50 Choosing Québec’s Mining Sector Primary processing plant development projects Rio Tinto Fer et Titane has invested CA$600 million into its metallurgical complex to upgrade its facilities. This complex produces titaniferous slag and steel from ore extracted at the ilmenite mine in Havre-Saint-Pierre. Nemaska Lithium is also considering the development of a lithium hydroxide and carbonate production plant in Québec, which would use as feedstock the concentrate from its Whabouchi mining project. Given the advanced status of many rare earth projects, the construction of a rare earth oxide production and separation plant in Québec is a distinct possibility. Many companies with rare earth projects in Québec have shown some interest in this type of project. Matamec Explorations has a mining project in the Abitibi-Témiscamingue region, south of Rouyn-Noranda, which aims to produce 3,600 tonnes per year of mixed rare earth oxide concentrate. The company intends to install a plant that would produce a mixture of rare earth oxides. Quest Rare Minerals has announced it is planning to build a processing plant to produce 10,400 tonnes per year of mixed light and heavy rare earth oxide concentrates in Bécancour. Feedstock at the plant will come from ore from the Strange Lake B-Zone in northeastern Québec. Commerce Resources has a project to set up a plant that will produce a mixture of rare earth oxides in southern Québec. The concentrate (16,850 t/yr) will come from a mining operation 130 km south of Kuujjuaq. GeoMega Resources has a mining project 100 km north of Lebel-sur-Quévillon that aims to produce a mixed rare earth concentrate and a niobium concentrate. The company intends to produce separated rare earths through the process of electrophoresis. Subsequent processing and manufacturing activities The presence of processing plants and clusters may play a role in fostering the emergence of other manufacturing activities. Québec is in a good position to develop its processing and manufacturing industries, namely in traditional sectors such as copper, nickel or zinc, but also in non-traditional sectors such as rare earths or lithium. Québec is already a step ahead in the production of lithium components and batteries, not to mention its initiatives in the development of electric vehicles. Two companies are currently active in this field in Québec: Phostech Lithium33 and Bathium Canada.34 To date, their lithium is sourced from outside of Québec. Thus, based on the strength of the electric vehicle industry, the accessibility of a green electrical power supply and its mineral potential, Québec is seeking to attract international manufacturers in this field.
ACTIVITÉS MINIÈRES AU QUÉBEC FREQUENTLY ASKED QUESTIONS ABOUT QUÉBEC’S MINING SECTOR
How are the powers shared between the Government of Québec and the federal government when it comes to the mining sector? The way in which jurisdiction is shared between the federal and provincial governments depends on the domain. The management and framework for the exploitation of natural resources, including mining, fall exclusively under Québec’s jurisdiction. Nevertheless, the federal government has the right to oversee certain environmental impacts. Moreover, all companies established in Québec must pay taxes to both the provincial and federal governments. What is the regulatory process to approve a mining project, from the exploration stage to mine closure? The Mining Act stipulates that a claim must be obtained before undertaking mineral exploration. A claim grants the holder the exclusive right to search for mineral substances on a well-defined piece of land. If the land is private, the claimholder must obtain written authorization from the landowner before accessing the land and carrying out exploration work. The claimholder must also advise the municipality and the landowner that a claim has been granted within 60 days following its issuance. The claimholder must also inform the municipality and the landowner about any work it will be performing at least 30 days beforehand. If applicable, the claimholder must communicate with Aboriginal communities who have been contacted by the government about the project. At all times, the claimholder must obtain authorizations and permits in order to comply with the provisions of the Environment Quality Act. Other laws may also apply. If a new deposit is discovered, the claim holder must obtain a mining lease under the Mining Act in order to exploit it. Before obtaining a mining lease, a mining company must submit a rehabilitation and restoration plan to the MERN, and have it approved by the Ministry. The application for the lease must be accompanied by a scoping and market study regarding the processing of ore in Québec. The Mining Act allows the government, on reasonable grounds, to require agreements that will maximize economic spinoffs in Québec, including primary processing. The mining company must also obtain authorizations from the Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC) in accordance with the Environment Quality Act. A financial guarantee is also required for site restoration. It represents the anticipated costs of undertaking the work provided for in the rehabilitation and restoration plan. This guarantee must be deposited in three instalments: the first (50%) within 90 days of receipt of approval of the plan and at the time the mining lease is granted, and subsequent instalments (25% each) on the anniversary date of the approval of the plan. Some exploration work will also require the deposit of a financial guarantee with the MERN. October 2015 52 Choosing Québec’s Mining Sector The Environment Quality Act requires an environmental impact assessment in the case of a project for the construction and operation of a metal ore processing plant, or the project for the development and operation project of a metal mine with a processing or production capacity of less than 2,000 metric tons per day, and in all cases of rare earth exploitation projects regardless of the processing or production capacity. Mining leases granted for a metal mine with a production capacity of less than 2,000 metric tons per day and leases granted to mine surface mineral substances for peat, or those required for industrial or commercial export activities, are subject to a public consultation held by the proponent. Upon cessation of mining operations, the operator may be required to obtain one or more certificates of authorization from the MDDELCC to undertake restoration work. The financial guarantee will be returned once the company has carried out all its rehabilitation obligations to the satisfaction of the MERN and the MDDELCC. Are the rights of foreign investors the same as those of Canadian investors? In Québec and elsewhere in Canada, all investors are treated equally, whether they are domestic or foreign. However, there are certain rules governing the takeover of Canadian companies by foreign interests. For more information, consult the following website: http://www.parl.gc.ca/Content/LOP/ResearchPublications/2011-42-e.htm Can a mining company hire workers from a particular region or union? Can it bring in its own workers? The Government of Québec encourages companies to hire Québecers living in nearby communities. Québec has skilled manpower in the mining industry, and these workers are based primarily in mining regions. A company established in Québec may nonetheless hire workers from anywhere in Canada. It is generally not possible to bring in workers from outside Canada to fill positions that could be filled by Canadians, except in cases of recruitment difficulties.35 Does Québec have standards to ensure the safety of workers in the mining sector? Québec’s occupational health and safety commission (Commission de la santé et de la sécurité du travail) is responsible for the administration of the occupational health and safety regime. In particular, it is responsible for enforcing the Regulation respecting occupational health and safety in mines.36 Moreover, the mission of the Joint Health and Safety Association, Mining Sector (Association paritaire pour la santé et la sécurité du travail du secteur minier 37) is to help workers and employers in the mining industry to eliminate at their source any hazards to the health, safety and physical integrity of workers. What mining associations are active in Québec? Three mining associations are active in Québec: the Association de l’exploration minière du Québec 38, the Association minière du Québec 39 and the Québec Peat Moss Producers Association 40.
What are the roles and responsibilities of the ministries and organizations that deal with foreign companies wishing to invest in Québec? Ministère de l’Énergie et des Ressources naturelles: for anything relating to mineral exploration and mining (permits, titles, mining rights, etc.) Ministère du Development durable, de l’Environnement et de la Lutte contre les changements climatiques 41: for anything relating to the environment and environmental impacts. Ministère des Finances 42, Ministère de l’Économie, de l’innovation et des Exportations 43 and Investissement Québec: for financial assistance, equity participation and general support for businesses. What are the laws and regulations that apply to the exploration and mining sectors? Acts and regulations of Québec: Mining Act44 / Regulation respecting mineral substances other than petroleum, natural gas and brine 45 Mining Tax Act46 Sustainable Forest Development Act / Regulation respecting standards of forest management for forests in the domain of the State An Act Respecting the Lands in the Domain of the State Environment Quality Act / Regulation respecting pits and quarries / Regulation respecting environmental impact assessment and review An Act Respecting Occupational Health and Safety / Regulation respecting occupational health and safety in mines Natural Heritage Conservation Act An Act Respecting the Conservation and Development of Wildlife Parks Act Acts and regulations of Canada: Canadian Environmental Assessment Act Fisheries Act / Metal Mining Effluent Regulations Nuclear Safety and Control Act / A number of implementing regulations N.B.: The information in this section is provided for illustrative purposes only
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Commercial production declared on April 1, 2015. A major new mine in James Bay, Canada.
During 2015, gold production totaled 268,100 ounces. In 2016, a conservative ramp-up schedule at Éléonore is expected to lead to gold production of between 250,000 and 280,000 ounces. Mine throughput is expected to average 4,900 tonnes per day from four production horizons following the depletion of the pre-production stockpile at the end of 2015. The focus in 2016 is on increasing underground mining rates, mill throughput and improved dilution through adjustment of stope design. The production shaft is expected to be operational by the end of 2016, eliminating the need to truck or hoist ore through the exploration shaft.
Drilling in 2016 will continue to target the 494 zone for reserve replacement and test the deep projection of the centre and southern ore bodies and the 494 zone.
Red Lake – Overview & Operating Highlights
Our Canadian cornerstone, amongst the world’s richest gold mines.
Red Lake is located in one of the world’s most prolific gold districts. In 2015, gold production totaled 375,700 ounces. The High Grade Zone is the backbone of the Red Lake operation, with an average grade of more than two ounces of gold per tonne. Recent investments in infrastructure and development have positioned this renowned mine for many more years of long-term sustainable production.
The focus at Red Lake in 2016 is on asset optimization and cost reduction efforts. Continued transition to mechanized mining, bulk mining and material movement automation is expected to result in lower grades and lower mining costs.
Exploration in 2016 will continue to focus on the high-grade HG Young deposit. A key priority is the evaluation of underground development options to better assess the continuity of the mineralization at depth. Exploration will also continue in the HGZ at depth and on further testing of High Grade Zone deep offsets.
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http://www.detourgold.com/projects/at-a-glance/default.aspx
| Open pit gold reserves of 16.4 million ounces |
Mine life of 23 years |
Significant exploration potential on prospective 630 km2 property |
| KEY OPERATIONAL FACTS | |
|---|---|
| Location | Red Lake, Ontario |
| Workforce (including contractors) | 1,250 |
| Mining type | Longhole, Underhand and Overhand Cut and Fill |
| Processing method | Cyanidation |
| Power demand | 38 MW |
| Milling/Processing capacity | 3,100 tpd |
| 2015 gold production estimate | 400,000 – 425,000 oz |
| GOLD RESERVES | |
|---|---|
| (as of December 31, 2014) | |
| Proven (oz) | 540,000 |
| Probable (oz) | 1,520,000 |
| Proven and Probable (oz)* | 2,060,000 |
* Due to rounding, numbers may not add up.
| KEY FACTS SUMMARY | 2014A | 2013A | 2012A |
|---|---|---|---|
| Operating data | |||
| Gold produced (oz) | 414,400 | 493,000 | 507,700 |
| Gold sold (oz) | 418,300 | 487,300 | 508,300 |
| Ore milled/processed (t) | 684,100 | 768,900 | 858,100 |
| Gold grade (g/t) | 19.47 | 20.33 | 19.52 |
| Gold recovery (%) | 96% | 95% | 96% |
| All-in sustaining costs (US$/oz) | $934 | $880 | $896 |
| Realized gold price (US$/oz) | $1,262 | $1,400 | $1,673 |
| Throughput (tpd) | 1,870 | 2,160 | 2,380 |
| Mining costs per tonne mined (US$/t moved) | $220 | $233 | $219 |
| Processing costs per tonne milled (US$/t milled) | $48 | $47 | $40 |
| Financial data (US$ millions) | |||
| Revenues | $529 | $684 | $852 |
| Depreciation and depletion | $116 | $107 | $83 |
| Earnings from operations | $168 | $309 | $503 |
| Expenditures on mining interests | $233 | $233 | $281 |
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