OFNEDA 2013 Annual Conference Presented by: Jennifer David Mining 101 Presentation OFNEDA 2013 Annual Conference Presented by: Jennifer David

Agenda Background on Mining Ontario’s Mining Landscape Odds of Finding a New Mine Mineral Exploration and Development Sequence Prospecting and Staking Grassroots Exploration Advanced Exploration Mine Development Production/Mining Closure and Reclamation The Mining Act

Ontario’s Mining Landscape Lead the way in spending and production Half of world’s publicly traded mining companies Canada’s biggest gold mine Ontario’s mineral production in 2012 was 9.2 billion. Nearly half of all suppliers 23,000 jobs Exploration spending and mineral production is highest in Ontario. TSX/TSX-V list ½ of worlds public mining companies. Detour gold (Cochrane) is Canada’s biggest gold mine. Ontario is home to 45% of the suppliers specialized mining goods and services in Canada.

Ontario’s Mining Landscape 35 operating mines (mostly gold or base metals) Jobs in and around Sudbury and northwestern Ontario $4 billion a year industry Mining is the largest industrial employer of Aboriginal peoples in Canada, 7.5% of the total labour force. Roughly 26% of mining employment is in Sudbury, 19% in Northwestern Ontario. Annually, 4 billion is invested in R&D, exploration, construction and equipment Average weekly wages in Ontario mining are 60% higher than the average industrial wage

Odds of Finding a New Mine

The Mining Cycle

Step 1 Prospecting and Staking

What is it and Who does it? Prospecting and Staking STEP #1 IN MINING CYCLE What is it and Who does it? Prospecting and Staking Prospecting is looking for minerals and metals Anyone can do it Need a licence and small tools Staking is marking a section of land so you can come back and continue exploring The initial step in the exploration process. Minerals and metals are discovered in this stage. There is minimal potential for any physical impacts on the land. Prospecting begins prior to staking Staking is marking a section of land to claim the sole right to prospect for minerals, if the prospector feels the area is worth further exploration.

Links to Economic Development Prospecting and Staking Links to Economic Development First Nations or on reserve members can be prospectors MNDM offers First Nation-specific prospectors course Communities or members may benefit from finding minerals

Step 2 Grassroots Exploration

What is it and Who does it? STEP #2 IN MINING CYCLE What is it and Who does it? Grassroots Exploration Often done by junior mining companies Low to moderate impact on the land Surveys (geological, geophysical, geochemical) Mechanical work (drilling, strip mining, channel mining) Possible bulk sample required Additional research

Links to Economic Development Grassroots Exploration Links to Economic Development Contracting out services like line cutting, digging and trenching, and diamond drilling. Catering and supply companies (food, fuel and possibly equipment rental). A very good opportunity to begin to set up small businesses within the community.

Grassroots Exploration At the political level, this is when First Nations enter into agreements Memorandum of Understanding Impact Benefits Agreement Partnership Agreement Memorandum of Understanding (MOU) - signed early in the process and determines how parties move forward. Impact Benefits Agreement (IBA) – Recognizes treaty rights, compensates for negative impacts, stipulates for employment and training, business opportunities, environmental protection and financial considerations. Partnership Agreements (PA) – Beyond an IBA, First Nation has a stake in the company through partnership or incorporated company. The community then has a say in finances, employment and contracting.

Step 3 Advanced Exploration

What is it and Who does it? STEP #3 IN MINING CYCLE Advanced Exploration What is it and Who does it? When a company believes it has discovered a sizeable deposit Done by junior or often major mining companies More impact on the land Triggers the need for closure plan Activities at this stage involve a higher impact on the environment (includes underground exploration, larger bulk samples and stripping). This triggers the need for a closure plan and financial assurances that the land will be rehabilitated once complete.

Links to Economic Development Advanced Exploration Links to Economic Development Political discussions on comprehensive agreements Contracting for services Contracting for supplies Labourers Small business/joint venture opportunities Baseline Environmental Studies Contracting for services – caterers, line cutting, transportation and freight services Contracting for supplies – food, fuel

Step 4 Mine Development 4. Mine Development

What is it and Who does it? STEP #4 IN MINING CYCLE What is it and Who does it? Mine Development Done by the major mining company willing to invest Viable deposits found Evaluation, engineering reports done Site plan drawn up Construction Major impact on the land (open pit or underground)

Mine Development Infrastructure Requirements A mine site can be open pit or underground. Regardless, a mine site will require: A mill Support buildings Access to a mine shaft (underground mining) A space to store waste rock Tailing ponds Roads and power corridors Stripping and storing of soil and vegetation overburden Water treatment facilities

Links to Economic Development Mine Development Links to Economic Development IBA or Participation Agreements: Employment and training Access to business opportunities Financial considerations Contracting for services Camp services, supplies Employment in trades, administration, manual labourers, equipment operators and professionals Contracting for services: (catering, site services, building construction, road construction and mine development) Camp services, supplies (fuel and food) Employment in trades (carpenters, electricians, etc,), administration (support staff), manual labourers, equipment operators and professionals (engineers, managers, etc)

Step 5 Mine Production Mine Production/ Operation

What is it and Who does it? STEP #5 IN MINING CYCLE What is it and Who does it? Mine Production The mine is in full operation Buildings and Infrastructure are in place Minerals are extracted, separated and sent for further refining Mine can operate between average 8 years (gold) and 50+ years (diamonds) and anywhere in between Process occurs once the proper infrastructure, permits and employees are in place. Ore that is separated from the tailings is sent for concentration and smelting. Milling is the process to extract the minerals from the ore Tailings ponds exist to contain the water and chemicals left over from milling

Links to Economic Development Production/Mining Links to Economic Development Entry level, semi-skilled, skilled and professional jobs required. Businesses will continue to benefit by providing: Camp, catering and housekeeping services; Contract mining (underground and open pit); Site services; Supplying goods and equipment; Surveying; Ongoing construction services; Environmental services; and Recycling services; Trucking

Production/Mining Depending on skillset, education/training level or experience there is a role in mining. Large labour shortage in the mining field Over 120 different types of mining occupations Colleges and Universities offer mine-related training programs Companies will have recruitment standards (pre- employment, medical and security) Skill development, mentorship, job shadowing are common on-site

Professional (University) Production/Mining Education Requirements Entry Level (Gr. 12) Semi-skilled (Gr. 12 + Exp). Skilled (College/Trades) Professional (University) Underground miner Warehouse technician Trades Managers Trades helpers Administrative Safety technicians Engineers Heavy equip. operators Environment techs Geologists Housekeeping services   Scientists Accountants

Step 6 Closure and Reclamation

What is it and Who does it? Closure and Reclamation STEP #6 &7 IN MINING CYCLE What is it and Who does it? Closure and Reclamation It begins when the mining is finished It includes: Removal of infrastructure (buildings, roads, power lines, etc.); Closing any openings in the ground; Returning the lands to as near natural state as possible; Ensuring physical and environmental safety is maintained; Monitoring the environment for years later; and Returning the lands to the Crown.

Links to Economic Development Closure and Rehabilitation Links to Economic Development Limited number of jobs and opportunities during closure Specialized business and employment required Main jobs include: Trades people to dismantle equipment Equipment operators and mechanic Inspectors Security and first aid personnel Environmental monitoring personnel (water and ground sample) Site reclamation companies Tree planters

Mining Act The Mining Act outlines rules and regulations that apply to mining in Ontario.

Former Ontario Mining Act New Provisions in Mining Act Former Ontario Mining Act New Ontario Mining Act Apply for a prospector’s licence. Complete the MNDM online educational program before applying for a licence. Lands could be withdrawn from claims staking (i.e. protected), but this would be at the discretion of the government (i.e. no legislative or regulatory requirements). Lands that are sites of ‘Aboriginal cultural significance’ can be protected from claim staking by a government Order in Council. Exploration Plans needed at grassroots exploration stage. No permits required to conduct early exploration activities. Exploration Plans or Permits are now needed to conduct early exploration activities. No requirement for Aboriginal consultation except when submitting a Mine Closure Plan. The Act must be implemented consistent with Aboriginal and treaty rights. Aboriginal consultation is required prior to submitting a Closure Plan, and prior to its filing by MNDM. Some mine sites were abandoned, and never reclaimed or rehabilitated. Anyone can apply to voluntarily rehabilitate a mine site without assuming liabilities.

Former Ontario Mining Act New Provisions in Mining Act Former Ontario Mining Act Changes to the Act Prospectors must stake their claim and register it with the Ontario government. Prospectors must stake their claim and register it with the Ontario government and also include GPS data on the location of the claim. Mining companies paid expenses related to Aboriginal consultations as it was not included in assessment work/costs. MNDM now covers some eligible expenses for Aboriginal consultation as part of assessment work/costs as well as the cost for companies to submit GPS data. Few rules on applying for permission to test a bulk sample. New thresholds for what constitutes bulk sample, more rules and permits required, permission to dispose of material. Aboriginal consultation occurred after a Closure Plan was submitted and before the plan is filed with the government. Aboriginal consultation must occur prior to submitting a Closure Plan. Closure Plan must include a record of Aboriginal consultation.