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

2. 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

3. 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.

4. 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

5. Odds of Finding a New Mine

6. The Mining Cycle

7. Step 1 Prospecting and Staking

8. 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.

9. 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

10. Step 2 Grassroots Exploration

11. 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

12. 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.

13. 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.

14. Step 3 Advanced Exploration

15. 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.

16. 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

17. Step 4 Mine Development
4. Mine Development

18. 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)

19. 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

20. 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)

21. Step 5 Mine Production
Mine Production/
Operation

22. 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

23. 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

24. 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

25. Professional (University)
Production/Mining
Education Requirements
Entry Level
(Gr. 12)
Semi-skilled
(Gr 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

26. Step 6 Closure and Reclamation

27. 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.

28. 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

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

30. 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.

31. 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.