The mining sector’s recent shift towards adopting technology to tackle rising costs is turning digital intellectual property into a valuable commodity in its own right, says global law firm White & Case.

“Technology is increasingly becoming a core component of mining and metals sector business strategies,” a partner with the firm, Daniel Turgel, told The Northern Miner in an interview Wednesday.

This trend is driven by rising operational costs and a need for the supply of minerals essential for the energy transition, according to the law firm’s March 5 report entitled Technology – The hottest commodity in the mining & metals sector.

IP is becoming crucial, transforming into a valuable asset exchanged among industry players to boost efficiency and reshape business models, Turgel explained.

A prime example is the partnership between Ivanhoe Electric (TSX: IE; NYSE AM: IE) and Saudi state-owned miner Ma’aden, leveraging Ivanhoe’s Typhoon technology to explore large areas in Saudi Arabia. Ivanhoe’s Typhoon technology, used for large-scale geological surveying, was essentially the ‘payment’ or value offered to Ma’aden for access to explore vast mineral-rich areas in Saudi Arabia.

“Technology actually becomes the currency,” Turgel said, highlighting the evolving nature of transactions in the sector and technology’s rising role in making new strategic cross-industry alliances.

“It’s becoming much more prevalent that for example, you might contribute your technology in return for an equity stake or some kind of debt instrument,” he said.

Rebecca Campbell, group head of global mining & metals, says this type of innovation is new for a generally conservative sector. “One of the fascinating things for us, as we’re starting to see a little bit of a shift.”

This trend underlines the growing importance of securing and managing IP rights amid the potential for new legal challenges. While hardware traditionally dominated the spotlight, the rise of software and AI has the potential to revolutionize mining operations. The report highlights the cost savings and efficiency gains achievable through these technologies.

Machine learning and AI have already provided considerable improvements in efficiency, accuracy, and safety mine planning and processing, White & Case associate Nick Crawford says.

“Generative AI, in particular, has opened new possibilities in exploring and processing vast amounts of geological data, significantly accelerating the project development process,” he said. “Companies like BHP and Vale are leveraging these technologies to improve safety, maintenance, and operational efficiency.”

Meanwhile, White & Case found that despite the urgent need to innovate, the sector’s spending on research and development (R&D) remains relatively low. Miners historically spend less than 3% of their EBITDA on R&D, as opposed to 8% for materials producers, 30% for industrials, and 40% for automakers and relevant original equipment manufacturers.

But are customers willing to pay more for low-carbon nickel? Some analysts say yes — under certain conditions.

“If the market sees a benefit in paying a premium for certain supplies then it will,” Jim Lennon, managing director of commodities at Macquarie Group, told The Northern Miner in an interview. “A buyer would be willing to pay a premium if they can see an economic benefit in using that product, such as receiving a government subsidy or securing a sale of a ‘greener’ electric vehicle.”

The price of nickel has been on a downtrend since late 2022 when it was $33,575 per tonne ($15.23 per pound). The price on Tuesday was $17,678 per tonne ($8.02 per lb.) and in February dipped as low as $15,850 per tonne ($7.19 per pound).

The price doldrums have prompted Wyloo Metals and BHP (ASX: BHP) to suspend operations in Australia, with BHP announcing it would take a $2.5 billion impairment on its assets.

Given the devastation to its nickel sector, Australia has been the most vocal in creating new variable price brackets for low-carbon emissions nickel.

The idea for premium ESG pricing isn’t new. In fact, some experts argue that there’s already a premium.

Canada Nickel (TSX: CNC) CEO Mark Selby says people might be surprised to learn that price premia have already been paid for various North American products perceived as cleaner on Asian markets.

Selby notes that domestic premiums for certain materials have been sustained over several years, which might not be directly attributable to lower carbon footprints or ESG factors alone but could be influenced by a combination of factors, including local supply.

But this type of premium isn’t helping Australian nickel miners. And deliberately imposing an ESG premium would be a different story.

“The main challenge is defining what ‘ESG-compliant’ actually means,” Macquarie’s Lennon said.

It’s an obstacle that the London Metal Exchange (LME) is facing as it investigates and prepares for the potential emergence of premium pricing for low-carbon products on separate trading contracts.

Georgina Hallett, LME’s chief sustainability officer, says that there’s increasing interest from producers, consumers, and investors in establishing a price premium for metals produced with lower carbon footprints. However, defining what constitutes ‘low carbon’ or ‘green’ metals isn’t easy due to the lack of a standardized, universally accepted framework for measuring and verifying the environmental impact of metal production processes.

“The aim is to build a robust framework that supports the gradual introduction of sustainability-linked pricing mechanisms while ensuring broad market participation and avoiding undue disruption,” Hallett told The Northern Miner. “By taking a step-by-step approach, the LME hopes to align the interests of various stakeholders and drive meaningful progress toward the integration of sustainability into the global metals market.”

Free market forces

Lennon suggests that establishing a special low-carbon contract for metals on the LME is unnecessary. This is because the prices for different products are already determined by normal market activities, such as supply and demand. Just like prices for different metal shapes and origins adjust based on market conditions, the prices for products with various ESG qualities would naturally adjust in the same way.

“Exchanges don’t need necessarily to get involved since they can focus on ‘objective criteria for delivery (shapes, metal purity, etcetera) and leave the market to decide on ‘subjective’ factors such as value-in-use of different products/shapes and ESG,” Lennon said.

From an exchange perspective, like the LME, there is also a risk of damaging liquidity if they were to introduce multiple contracts. Compared with large commodity derivative markets, nickel is not particularly liquid and dividing this liquidity could reduce the usability of the market for some participants.

Lennon says markets will ultimately determine the outcome. Currently, nickel prices vary significantly between products depending on supply and demand.

Today’s primary nickel products that are LME deliverable include metal rounds, pellets, cut cathode, and full plate cathode. When delivered to LME warehouses, each product is assigned a associated warrant. When buyers want to take delivery from the LME, they are often willing to pay LME brokers a premium for warrants of a particular material shape or origin.

Similarly, other non-LME deliverable products, including intermediates (concentrates, mattes, MHP, MSP, etc.) or finished products (ferronickel, nickel pig iron, nickel sulphates, nickel chlorides, etc.) also sell at varying discounts or premiums to LME base prices. Lennon said these premiums/discounts can shift dramatically due to changes in supply and demand.

For example, nickel pig iron was selling at a premium to the LME price at the start of 2022 and then had fallen to a discount of 40% to the LME by the first half of last year.

“Product type, ESG, and country of origin are all important properties and presumably were factors that led major automakers to agree to term supply contracts with BHP and Vale in recent years. ESG was no doubt a factor in these negotiations,” Lennon said.

Canada Nickel’s Selby emphasized the importance of provenance tracing rather than setting up a formal two-tiered pricing system.

He points out that imposing a pricing mechanism before the market is ready can lead to inefficiencies, such as a benchmark that does not accurately reflect market conditions. He suggests letting the market sort it out.

“We will continue to observe the distinction between Western-supplied, clean, green nickel and the high-carbon, less ESG-compliant nickel from China and Indonesia,” he said. “As for the necessity of a formal pricing mechanism, it’s typically better if such mechanisms emerge naturally in the marketplace before establishing a formal platform for trading them.”

Aussie nickel rout

An increase in supply from Indonesia has cratered nickel prices, as the southeast Asian nation boosted production of refined and semi-refined nickel, mainly on the back of an export ban on raw ore, which led to massive investment from China in new processing plants, according to Lennon.

Indonesia has become the dominant nickel producer, accounting for 55% of global supply, up from 7% in 2015, according to Bank of America data. But it relies on coal-fired power.

Higher-cost Australian supply can’t compete. Australia’s federal resources minister Madeline King responded to the raft of nickel suspensions by adding nickel to the country’s critical minerals list, enabling industry access to part of the A$4 billion ($2.6 billion) federal funding earmarked for critical energy transition minerals exploration and development.

“Prices paid for Australian minerals need to recognize the high ESG standards the Australian industry adheres to and the fact that Australian workers enjoy good working conditions and the highest safety standards.”

At PDAC, she noted that Canada and Australia have agreed to jointly advocate for robust ESG credentials to be built into global, transparent and traceable critical minerals supply chains.

Laying foundations

The LME has been considering introducing a premium for green or sustainable metals since it released a 2020 white paper on the topic, Hallett noted.

In 2021, the LME collaborated with Metalshub, a digital metals procurement platform which facilitates buyers’ access to the physical metal that meets specific attributes including carbon intensity and other ESG criteria. The LME said that low-carbon nickel, classified as producing 20 tonnes of carbon dioxide or less per tonne of nickel, could already be traded on Metalshub’s system.

The platform aims to allow market participants to specify and search for metals that meet specific sustainability standards, thereby fostering the emergence of a market-driven definition of ‘green’ metals.

Hallett says the critical missing component to formalizing a new price bracket is doing the less sexy but foundational work around how one measures emissions the same way across the industry. The point is to create an equal playing field for products in the value chain included in that new contract.

The LME has initiated several measures to promote sustainability within the metals market. One of the key initiatives is the development of metal-specific measurement methodologies, in collaboration with metal industry associations, to standardize measuring carbon emissions across different metals.

However, the LME’s taking a deliberate approach to implementing a low-carbon pricing mechanism for nickel and other metals, given the still-evolving market for low-carbon metals.

“Our approach remains one of cautious optimism and pragmatic progression,” Hallett says. “We are committed to leading the industry towards a more sustainable future, understanding that real change is achieved not by rushing but by thoughtful, collective action.”

The discovery in the emerging Sore area returned significant intercepts such as 26.45 grams gold per tonne over 2.5 metres, including a higher-grade segment of 108.5 grams gold per tonne over 0.5 metre, including 1.05 grams gold over 40.7 metres and 1.33 grams over 17.9 metres. This area has not seen any previous diamond drilling within 1 km, the company said in a release.

“A new discovery, greenfield and on a blind target, further highlights the prospectivity of the Aurion-B2Gold 290 sq. km JV property and the quality of B2Gold’s exploration team,” Aurion CEO Matti Talikka said.

Company shares reached an intra-day high of C$0.62 apiece before settling at C$0.59. Aurion has a market capitalization of C$79.5 million.

Results are pending for about 4,000 metres of diamond drilling completed this year.

However, the drilling program was halted after Rupert Resources (TSX: RUP) entered discussions on March 11 to buy B2Gold‘s 70% interest in the JV. Aurion says it is considering its options regarding its right of first refusal. It will have until May 9 to decide whether to exercise the right, granted under a 2019 shareholders agreement between the partners.

The discovery is located 1.7 km northwest of the Kettukuusikko prospect and 38 km northwest of the Helmi discovery.

Rupert is also focused on the Central Lapland belt. Its Rupert Lapland project contains the multi-million-ounce Ikkari discovery, located 50 km southeast of Agnico Eagle Mines’ (TSX: AEM; NYSE: AEM) Kittila gold mine and the Pahtavaara mine and mill.

The JV between and B2Gold covers about 290 sq. km along the Sirkka Shear Zone, which is a significant structural feature in the region known for hosting various gold occurrences. The area has yielded numerous discoveries, showcasing the high prospectivity and potential for further discoveries within the belt.

Under the agreement, Pilbara will deliver 20,000 tonnes of the mineral from its Pilgangoora operation in Western Australia this year and 100,000 tonnes annually in 2025 and 2026, with an option to supply an extra 60,000 tonnes each year, according to the Perth-based company’s March 12 news release.

“This offtake builds on an established relationship between our companies, having previously completed a number of sales together,” Pilbara managing director and CEO Dale Henderson said in the release.

As Australia’s largest independent lithium miner, the new offtake comes on the heels of Pilbara in January increasing its sales contract with another Chinese company, Ganfeng Lithium, over the next three years and has the option to boost the spodumene concentrate tonnage sold to the major. In February, it amended a spodumene supply deal with chemicals producer Chengxin Lithium Group, raising agreed sales volumes and extending the contract’s duration.

Pilbara says the spodumene will be sold at market prices at the time of each delivery. Prices for lithium carbonate, a precursor to lithium hydroxide used in batteries, have fallen sharply in the past 12 months. Lithium carbonate fetched about $15,653 per tonne as of Wednesday, down from about $23,658 in September and 80% lower than in 2022, according to Trading Economics.

Yahua, known for its stature in the lithium market, serves major clients like Tesla and LG Chem, establishing itself as one of the leading lithium hydroxide producers.

The scale and quality of the operation have attracted a consortium of high-profile global partners, including POSCO, Ganfeng, General Lithium, Yibin Tianyi, Chengxin Lithium and Yahua.

Pilbara is focusing on enhancing the value of its hard rock spodumene ore to expand its business. The company is establishing a demonstration plant at Pilgangoora to process lithium. According to the company, if this technology utilizes renewable energy, it could reduce carbon emissions by over 80% during one of the most energy-intensive phases of lithium battery material production.

Additionally, the plant aims to support Pilbara in achieving a production target of 1 million tonnes of spodumene concentrate by next year.

Pilgangoora hosts proven and probable reserves of 214.2 million tonnes grading 1.19% lithium oxide for 2.5 million tonnes of lithium. The resource base across all categories totals 413.8 million tonnes grading 1.15% lithium oxide for 4.8 million tonnes of metal.

Pilbara shares closed Wednesday at A$4.18 apiece in Sydney, giving the company a market capitalization of A$12.6 billion ($8.3 billion).

The company reported on Tuesday an A$167.6 million loss for 2023 as its share price has crumbled in the past year from A$1.20 to A$0.20 at the close on Wednesday.

“Despite the sharp drop in lithium prices, we’ve improved production and efficiencies, producing 49,530 tonnes of spodumene concentrate in the latter half of 2023,” outgoing CEO Gareth Manderson said.

Despite halting mining on Jan. 5 at its Finniss lithium operation in Australia’s Northern Territory, the company continues processing existing ore stockpiles to maintain spodumene concentrate production. The focus has shifted towards cash preservation and assessing the viability of its lithium projects, along with exploring the potential in its wholly owned gold, uranium, and base metal assets.

Manderson, a former Rio Tinto (ASX: RIO) executive who joined Core in August 2022, has decided to step down as CEO. Under his leadership, the company saw the establishment of a proficient management team and the start of operations at Finniss despite facing such challenges as underperforming open-pit mines and incomplete infrastructure.

His tenure was marked by developing efficient operations and fostering a culture focused on safety, professionalism, and accountability, the company said in a Tuesday release.

Following Manderson’s departure, Doug Warden, the current CFO, will serve as the interim CEO, receiving an additional monthly allowance for his new duties. The company is actively seeking a permanent CEO replacement. In parallel, James Virgo steps in as the interim CFO, bringing extensive financial management experience from his time at Resolute Mining.

Andrea Hall, a non-executive director since April 2023, also resigned, aiming to facilitate a board restructuring that aligns with the company’s future strategy.

Core produced 49,530 tonnes of spodumene concentrate in H2 2023, improving production and efficiencies despite the drop in lithium prices.

Core continues to evaluate its strategic options amidst the challenging market conditions, focusing on sustainability, operational efficiency, and financial stability.

As of October 2023, Finniss held 10.5 million tonnes across three resource categories grading 1.53% lithium oxide for 160,000 tonnes of metal.

At A$0.20 per share on Wednesday, Core’s Sydney-listed equity is down 83% over the past 12 months, and it has a market capitalization of A$427.4 million.

In the court-mandated overhaul of the Mineral Tenure Act (MTA), which must be completed by early 2025, the industry has been reduced to listen-only status, AME president and CEO Keerit Jutla says. The industry was caught by surprise Thursday, when B.C. issued interim orders to protect Gitxaala Nation and Ehattesaht Nation’s mineral interests, and also outlined a process for cooperation and consultation for modernizing the Mineral Tenure Act.

“Industry and stakeholders are not being engaged in the manner and weight and importance that we should be,” Jutla said in an interview. “We’re getting brought in on these issues at the very last minute. And when we are, we’re being asked to sign NDAs and to kind of listen to feedback. But that’s all it is, feedback; it’s not input into a decision being made. It’s just FYI.”

Jutla questions the current state of industry engagement, and highlights a lasting disconnect between industry consultations and government actions. “Ensuring their ability to explore is at the crux of our members’ interests,” Jutla said.

Regulatory uncertainties hit junior companies and individual prospectors hard, stifling innovation and growth. These entities struggle with financial and operational barriers due to unclear regulations.

“Not everyone has the bankroll of tech companies. Every dollar matters,” Jutla said.

The AME does not expect more interim measures that restrict mineral claims in other parts of the province. “It remains business as usual for our members in the rest of B.C.,” he said.

Orders in council

B.C.’s Energy, Mines and Low Carbon Innovation ministry said in two statements the interim measures were implemented following an agreement with Gitxaała and Ehattesaht nations.

The interim measures respond to a Supreme Court decision from September 2023, requiring consultation with First Nations prior to mineral registration. The ruling aims to address the adverse impacts on their lands, mandating B.C. to revise the MTA within 18 months to incorporate consultation requirements. Following the new provincial measures, First Nations temporarily halted some appeals, impacting mining activities and new permits in Gitxaała and Ehattesaht territories and halting new mineral claims without their consent.

“The current MTA is entirely inconsistent with and undermines our title and rights, including our inherent rights to self-determination and self-governance,” B.C. Assembly of First Nations regional chief Terry Teegee said in a statement.

The mines ministry said that cooperation, consultation with First Nations, and engagement with industry and interested groups will launch this month.

Despite governmental investments such as the C$24-million launch of a critical mineral strategy earlier this year, there remains “a significant lack of clarity and certainty” on mining investments, Jutla says.

This ambiguity hurts the industry’s ability to plan and operate efficiently. “We do not have clarity on the regulatory framework, and we do not have certainty on the land base,” he said.

Building bridges

Despite these challenges, Jutla still believes it’s possible for the industry, government, and Indigenous communities to work harmoniously together to foster mutual respect, understanding, and economic prosperity.

“We can’t build that bright future unless we’re all talking and working together in a very good positive way, building innovative solutions,” Jutla said.

AME advocates for early and frequent engagement and encourages its members to build strong, respectful relationships with Indigenous communities.

“The stronger of a relationship you have with anyone, the better you can do any type of business,” Jutla said. “It’s right to respect Indigenous rights, traditions, and interests in land-use decisions. It is reasonable for the industry to seek clarity and certainty as the government moves forward.”

Despite releasing relatively encouraging exploration results from the Fazenda do Posto (FDP) and Butiá deposits in Rio Grande do Sul state, Lavras shares fell 24% to a session low of C$0.24 on Thursday morning. Lavras, which has a market capitalization of C$40.5 million is still up 93% over the past year.

“People buy on the rumour and sell on the news now in this market – I think it’s just a factor of the market,” Naomi Nemeth, vice-president for investor relations, told The Northern Miner by telephone.

Lavras announced on Thursday that hole 23FP011 at FDP returned an average grade of 1 gram gold per tonne over 173 metres, starting from a depth of 69 metres. This section included 1.4 grams gold over 94.8 metres. Similarly, hole 23FP008 showed 1.1 grams gold over 123 metres, indicating the presence of a large, near-surface, bulk-tonnage gold system, the company said in a release.

The FDP discovery has now been traced over a 200 metres strike and lies 150 metres west of the Butiá deposit, which already hosts a measured and indicated resource of 12.9 million tonnes at 0.97 gram gold per tonne for 376,751 oz. of metal.

The company says the proximity of these two sites raises the potential for a combined open-pit development project.

Retail bail

One explanation for the share price drop is that retail investors might have been seeking more bonanza-grade intercepts, as in the announcement of Aug. 2 last year. Hole 23BT004 returned a 4-metre section from 31 metres depth, where each respective metre assayed returned 52.3 grams gold per tonne, 9.28 grams, 110.5 grams and the last had 2.28 grams gold. The hole essentially started the six-bagger rally through early October.

“What we’re building there at the FDP and Butiá project is several football fields in each direction of mineralization, and the corporates get it. It’s more the retail shareholders who want to see super high grade at that volume,” she said, suggesting it’s the retail investors leaving in droves.

“It’s also possible we’ve got a big seller, but how do we know in Canada? We never know who’s selling our stock; unless they tell us.”

Nemeth suggests the selloff was part of normal market fluctuations and cycles, with no material reason to blame for the negative movement, other than noting that a particularly sharp selloff like today’s, was in her experience, rare.

Nemeth said that as of December 2023, the company had about C$10 million in cash in the bank to see the current exploration through, and follow-up work will be budgeted as needed.

The company enjoys the financial backing of industry notables, including Eric Sprott at 15%, a 30% institutional follow, 20% by insiders and management, and 5% by Kinross Gold (TSX: K; NYSE: KGC). Other notable owners include Lawrence Lepard, with insiders buying a big chunk of shares in the last few months. Eric Sprott, Rob McEwen, and Kinross bought shares at C$1.35.

2024 exploration

Lavras says the exploration results from FDP confirm the presence of extensive gold mineralization but also suggest a high-grade core of mineralization that could significantly impact the project’s economics.

Gold is mainly found in hydrothermally altered granitoid rocks, which show characteristics of a disseminated, bulk-tonnage gold system.

Lavras plans to continue its exploration with an additional 10,000 metres of drilling budgeted for the FDP and Butiá sites.

Russia is the biggest global supplier of uncut diamonds by volume. The international community has imposed new sanctions targeting Russian diamond transactions as part of a wider strategy aimed at reducing Moscow’s income streams, which support its military actions in Ukraine.

In December, the G7 nations of Canada, France, Germany, Italy, Japan, the U.K. and the U.S. declared an outright ban on Russian diamonds, effective from Jan. 1. That is to be followed by gradual implementation of restrictions on indirectly imported Russian diamonds starting from March 1. By September, a new system for verifying the origins of these gems is expected to be in place, although details regarding the verification process and its location remain uncertain.

“The G7 must understand that the direction they have chosen will cause great damage to the world diamond industry. We hope that the concerns we are voicing will convince the G7 governments that an alternative solution must be found,” WFDB president Yoram Dvash said in a Feb. 28 statement to The Northern Miner.

Criticism of the sanctions comes against a backdrop of lower demand for diamonds from India and China, and falling prices for rough stones, estimated by the Zimnisky Global Rough Diamond Price Index to be down about 25% from their early 2022 high.

‘Irreparable’ industry harm

The industry leaders are worried that enforcing these sanctions could lead to logistical, operational, and financial challenges. Among the sanctions’ new effects, one rule is that non-Russian diamonds must now be certified in Antwerp, Belgium before being sent to other markets.

They’re concerned about possible supply bottlenecks and unbalanced advantages to one player to the detriment of others.

“While strongly agreeing that the time has come for the industry to be able to trace the origin of their diamonds, we should be working together to meet these objectives but feel that the process that has been suggested will cause irreparable harm to the non-Russian industry,” presidents and members of the 27 diamond bourses within the WFDB said in the open letter.

Dvash says the WFDB is actively seeking industry consensus to address the challenges at hand. “Sanctions should work in the right direction, punishing the intended party and not the entire industry,” he said, adding that the sanctions could inadvertently make Russian diamonds more desirable due to increased costs and reduced supply of non-Russian alternatives.

The effect on the cost of rough and polished diamonds from non-Russian sources being forced into one node wasn’t considered in the calculations, the WFDB letter argued, voicing strong opposition to designating Antwerp as the single verification point.

“As diamond experts, we know that this would add no value to the objectives of the G7 member states and would result in a major restriction for all non-Russian diamonds, with terrible impacts on the industry,” the letter reads.

What’s more, the higher anticipated costs of shipping the diamonds to Belgium, which will ostensibly include extra financing terms for the diamond traders as well as insurance and freight charges will add significantly to the price of the stones.

Sovereign interference

The diamond bourses say the process detailed by the EU, as it stands, undermines sovereign African governments’ ability to send their gemstones directly to their chosen market. It also undermines legitimate local industry beneficiation and could encourage smuggling, which the WFDB says would be counterproductive.

Belgium favours conducting these verifications locally. Its support aligns with the Belgian government’s and the Antwerp World Diamond Centre’s aim to establish a hardy, traceable system for verifying the origins of diamonds to prevent Russian gems from entering the market under pretenses.

Botswana, Africa’s diamond hub, issued a statement on Feb. 9, generally supporting the initiatives to ensure that the diamond trade is responsible and does not fund conflict. Despite potentially facing added costs in a new verification system, the Botswana government sees an opportunity for enhanced value for its natural diamonds.

While the country has not directly banned Russian stones, it favours continued dialogue and partnerships with the G7 and other stakeholders to build a market that benefits development and avoids funding illegal activities. Botswana aims to protect and promote its diamonds-for-development narrative while ensuring its diamond industry remains a positive example of ethical sourcing and economic benefits.

Reuters reported on Feb. 8 from the Cape Town Mining Indaba that De Beers, a unit of Anglo American (LSE: AAL), and Botswana’s state-owned Okavango Diamond Company asked the G7 to consider unintended consequences as the bloc prepares to impose the second phase of the ban on Russian diamonds, concerned that African prices would be hugely inflated.

“Effectively (African producers) would be forced to send all their diamonds in one direction rather than choosing … (and) ethical African diamonds would become much more expensive,” De Beers CEO Al Cook told Reuters on the sidelines of the conference.

De Beers had previously urged the G7 to engage Botswana, Namibia, South Africa, Angola and India to develop the framework with input from across the industry.

Diamond market outlook

The diamond leaders call for more explicit guidance and a more global, collaborative approach to ensure transparency and ethical sourcing without disproportionately impacting the broader industry. They stress the need for solutions that do not centralize trade to a single point (such as Antwerp) and request the adoption of technology that could support the ethical tracking of diamonds across all regions, including support for artisanal and small-scale miners.

The signatories also want the G7 and EU to give assurance that whichever provenance-proving technology they settle on for diamond verification should be shared universally with non-Russian diamond producers to enable their continued inclusion in the market.

Artisanal and small-scale miners must also have free access to the technology and should be able to send their rough stones to any cutting centre.

While the Russian diamond sanctions intensify, De Beers said in a Feb. 22 market update that industry conditions are expected to remain “challenging” in the short term but that the long-term outlook is favourable.

De Beers says the heightened emphasis on the origins of diamonds, particularly with the upcoming G7 restrictions, may boost demand for De Beers’ diamonds, especially those tracked via their blockchain platform, Tracr.

However, the global supply of rough diamonds may decrease due to aging mines and few discoveries.

Further, De Beers says the market for lab-grown diamonds is experiencing a significant price drop, impacting manufacturers and possibly reducing retail prices, which could enhance the perceived value of natural diamonds compared to lab-grown alternatives.

The lawsuit, filed last week in the Superior Court of Justice in Thunder Bay, conveys the community’s persistent opposition to mining on its traditional lands, as shown by a mining moratorium it declared in 2023.

The dispute hinges on the issuance of road construction permits by the Ontario Ministry of Natural Resources and Forestry on Feb. 9, which Cat Lake leaders describe as blatant disregard for their vehement opposition. Chief Russell Wesley said in a sharply worded news release last week that the community is concerned over potential adverse effects on wildlife habitats, fish populations, and sacred sites, including areas with pictographs and ancestral burial grounds.

“Once such a road is built — cutting down trees, harming local wildlife habitat used by moose, caribou and wolverine, depleting fish stocks, damaging sacred Cat Lake cultural sites, and disturbing Cat Lake burial grounds — such actions, and their harms, cannot be undone,” Wesley said in the release.

The move comes as a mild winter wreaks havoc among remote First Nations communities, which depend on ice roads for resupply. The lawsuit also comes just over one month after the Chiefs of Ontario urged the province to call a 365-day moratorium on the Mining Lands Administration System (MLAS), due to what it said was an exponential rise in claims being staked on First Nations territories.

Demand for equal treatment

Cat Lake states that the company and the government are proceeding without the community’s approval, underlining the need for time to evaluate the potential effects.

Wesley argues that the province prioritized the financial interests of the mining company above the safety and welfare of his community. “We demand equal treatment and consideration for the well-being of our people as we continue to work towards protecting our rights and land,” he said.

Located 180 km north of Sioux Lookout, Cat Lake First Nation is the closest community to the proposed Springpole site, one of Canada’s largest undeveloped gold projects. It hosts 151 million indicated tonnes grading 0.94 grams gold per tonne and 5 grams silver for 4.6 million oz. gold and 24.3 million oz. silver, and 16 million inferred tonnes at 0.54 grams gold and 2.8 grams silver for 300,000 oz. gold and 1.4 million oz. silver.

First Mining’s CEO, Dan Wilton, sought to strike a reconciliatory tone in a press statement Monday.

“While it is disappointing that CLFN has chosen to oppose these important, temporary safety activities, First Mining continues to listen to the concerns of Indigenous communities,” he said, adding, “This temporary winter road will allow First Mining to keep its focus on operating in a safe and environmentally responsible manner.”

First Mining, while pushing forward with the project and expecting to conclude its environmental assessment processes by 2025, maintains that it has engaged thoroughly with local Indigenous communities. Wilton has expressed a “very high degree of confidence” in gaining the necessary environmental assessment approvals, attributing this optimism to pro-mining sentiments within the Ontario government and projected infrastructure improvements for remote communities like Cat Lake.

Earlier this month, in the wider Thunder Bay region, Nishnawbe Aski Nation (NAN) chiefs declared a state of emergency as unseasonably warm winter threatens the seasonal winter road network, a vital transportation link for most of the NAN’s 49-member First Nations.

“The winter road season should be well underway, but temperatures remain unseasonably warm, making them extremely dangerous and unsafe to use,” Grand Chief Alvin Fiddler said in a Feb. 9 statement.

Shares closed at C$0.11 apiece on Monday, losing more than 40% in value over the past 12 months. It has traded between C$0.105 and C$0.193 over the past 12 months and has a market capitalization of C$100.9 million.

From discovery in 2017 to an initial resource in 2023 that outlined one of the largest lithium pegmatite resources in the Americas, the company’s now eyeing its next milestone: A mine that will feed into North America’s nascent EV supply chain.

“The scale and the location of the Corvette project imply that it’s going to be a useful project to help underwrite the balance of the supply chain that’s required to support value-added chemicals the energy transition requires,” CEO Ken Brinsden told The Northern Miner in an interview in February.

Brindsen, who shepherded Pilbara Minerals from junior explorer to a top global lithium raw materials entity, took the reins at Patriot in January.

The management shuffle saw him transition from non-executive chair to CEO, president and managing director residing in Montreal, while Blair Way, who has steered the team to this point as CEO since May 2022 took the COO role to provide hands-on management as Corvette moves through the next stages toward development.

With more than 100,000 metres of drilling, Patriot reported an initial inferred resource for the CV5 deposit last June of 109 million tonnes at 1.42% lithium oxide for 1.6 million tonnes lithium oxide.

Corvette, the eighth largest lithium pegmatite globally, hosts large spodumene crystals, enhancing processing efficiency and recovery rates, Brinsden said. With C$133 million in funds as of the second fiscal quarter — much of it from Albemarle, which invested C$109 million last year — the company said it is well-financed to push forward with exploration, technical studies, and the permitting process.

Quebec has become a hard rock lithium hotspot as companies vie to supply the electric vehicle market. Last year, the federal government approved Galaxy Resources’ (now Arcadium Lithium (ASX: LTM)) James Bay open-pit project. Sayona Mining (ASX: SYA) began production at its 75%-owned North American Lithium project in Quebec last year. Perth’s Winsome Resources (ASX: WR1) recently identified a significant lithium resource, making Adina North America’s leading hard-rock lithium project.

The heavy presence of Australians is no coincidence.

The established lithium market in Australia, bolstered by Chinese demand, has led to higher equity valuations for Australian lithium companies. Patriot’s Australian listing has given it access to those same investors, which has partly driven its success.

Brinsden and Way, in separate interviews, said they both anticipate that as North America and Europe develop their lithium supply chains, Canadian projects like Corvette could see similar increases in valuation and investor interest.

Aussie hard-rock experience

Brinsden views the strategic geographical advantages of Western Australian mines in serving North Asian markets are comparable with Quebec’s potential to cater to North America and Europe. Way and Brinsden both see the geographical positioning of their project as a key advantage, with Quebec’s resources like Corvette poised to reduce reliance on distant supplies and potentially Western supply chains.

While the Australian hard-rock lithium mining industry benefits from strong ties with China, driving demand, investment, and growth, dependency on China also exposes the supply chain to geopolitical and economic risks. Brinsden says North America’s current push to diversify relationships and avoid reliance on a single market to develop resilient lithium supply chains is a good call.

In his experience, the Australian government has had a hands-off approach compared with the proactive, supportive stance of Canada’s Quebec province, and the coordinated approach to industry growth laid out in the federal Critical Minerals Strategy.

Discovery to resource

The discovery of a major spodumene lithium deposit in the Americas stemmed from a previously overlooked early 2000s geological report by Virginia Mining, which, despite focusing on base and precious metals, contained a footnote in French indicating the presence of lithium-rich spodumene.

Seizing this clue, the team used Google Earth to locate and then stake a pegmatite outcrop, now known as CV1.

At this time, part of the property was under the control of Osisko Mining due to a series of acquisitions but was not being actively explored for lithium. Patriot Battery Metals (formerly known as 92 Resources and then Gaia Metals) negotiated an option agreement between 2016 and 2017 when the lithium market was starting to heat up.

Despite initial exploration challenges and a temporary lull in lithium prices, the company kept the option agreement alive.

During the early days of the covid-19 pandemic when travel restrictions limited Way’s ability to work internationally, he advocated for drilling, which started as lithium prices began to recover in 2020.

The company rebranded to Patriot Battery Metals in June 2021, and raised money for more extensive drilling before acquiring the project outright. Drilling success throughout 2021 and 2022 attracted strategic investments, notably C$109 million from Albemarle, a leading global lithium producer, last year.

The investment at C$15.20 per share implied a valuation on a fully diluted basis of C$2.2 billion – a far cry from its recent market capitalization of C$801.9 million at C$6.96 per share.

2024 catalysts

Brinsden says Patriot is committed to a strategy of responsible but rapid development. Brinsden’s expertise is shaping a mining operation that prioritizes extraction and ecological and social integrity.

“We’re not just about mining lithium; we’re laying the groundwork for a cleaner, more sustainable world,” Brinsden said, outlining the big-picture vision.

“Our discovery at Corvette is not just about unveiling a lithium deposit; it’s about reshaping the future of energy in North America,” Way said.

This year, Patriot aims to deliver an updated resource estimate for CV5 by the third quarter, moving towards a prefeasibility study by year-end and advancing permitting.

It also plans to expand exploration and drilling, with CV13 and additional pegmatite clusters CV8, CV9, CV10, and CV12 getting more attention. The company also intends to demonstrate the exploration potential along the 50-km lithium pegmatite trend at the Corvette property, including assessing unexplored sections and discovering new spodumene clusters.

Great Bear now contains 3.3 million oz. gold in 22.7 million inferred tonnes (open pit and underground) grading 4.5 grams gold per tonne, the gold major reported in its 2023 results.

The previous inferred resource was 2.3 million oz. gold in 20 million tonnes grading 3.5 grams. Measured and indicated resources remained the same at 2.8 million oz. of metal in 33 million tonnes grading 2.7 grams gold.

The company plans to complete a preliminary economic assessment at the project late this year.

“Great Bear continues to exceed expectations and we were excited to add more than one million ounces of higher-grade underground resource,” Kinross CEO Paul Rollinson said in the release. “We continue to successfully target extensions of the resource at depth, reinforcing our view that Great Bear has the potential to be a large, long-life, high-grade mining complex.”

Analysts share the company’s optimism for the project’s growth prospects, with BMO Capital Markets seeing the potential for an even longer-lived mine than currently envisioned.

“While Kinross management continues to envision Great Bear as a about 10,000-tonnes-per-day project, the prospectivity of the site could add significantly to mine life and operational flexibility and could improve project economics through delineation of deposits with higher grades or lower development/operating costs,” mining analyst Jackie Przybylowski said in a note to clients.

The underground resource grade rose to 4.5 grams gold from 3.6 grams gold per tonne. Significant growth occurred in the LP zone, with additional gains at the adjacent Hinge and Limb zones. Promising high-grade intercepts suggest these zones may extend deeper, potentially augmenting future LP zone output.

Kinross is moving forward with an advanced exploration program on the property, with onsite infrastructure planning well advanced.

The company aims to start surface construction work in late 2024, dependent on permit approvals, and start work on an underground decline by mid-2025.

Kinross recently submitted an initial project description, starting the timer on the federal impact assessment process. The company expects to file a detailed project description soon, with the impact statement to follow in early 2025.

Toronto-based Kinross bought the property about 500 km northwest of Thunder Bay, and 25 km southeast of Red Lake in February 2022 via a takeover of Great Bear Resources for C$1.8 billion ($1.4bn) in cash and shares.

Strong performance

In the fourth quarter of last year, Kinross reported a year-over-year production decrease in gold production to 546,513 equivalent ounces, from 595,683 oz. gold-equivalent. However, it achieved a 10% increase in annual gold output to 2.2 million oz. of gold-equivalent, up from 2 million oz. in 2022.

Enhanced operations mainly drove this growth at La Coipa in Chile, and Tasiast in Mauritania, despite a production dip at Bald Mountain in Nevada.

The average realized gold price from continuing operations was $1,945 per oz. for 2023, compared with $1,793 per oz. for full-year 2022, boosting revenue to $4.2 billion for the year, a significant rise from $3.5 billion reported in 2022.

Cost of sales per gold-equivalent ounce rose to $976 per oz. in the fourth quarter from $848 in the year-earlier period.

The company’s earnings experienced a dramatic turnaround, with the higher output, gold price, effective cost management and improved efficiencies driving up net earnings from continuing operations to $416.3 million in 2023, starkly contrasting to the $31.9 million reported in 2022. Capital spending also rose, attributed to efficiency improvement investments in Tasiast and the Manh Choh project in Alaska.

In 2024, Kinross expects to produce about 2.1 million attributable gold-equivalent oz., matching its 2023 production level. The company expects to maintain its annual production at around 2 million attributable gold-equivalent oz. in 2025 and 2026.

The company expects its all-in sustaining cost to be $1,360 per gold-equivalent oz. for 2024, compared with the $1,316 per oz. in 2023.

Kinross shares traded 2.4% higher at C$6.92 apiece in early afternoon trading in Toronto. Kinross equity is up 25% over the 12-months, having touched C$4.71 and C$8.39. It has a market capitalization of C$8.5 billion ($6.3bn).

Macquarie data shows that new global manufacturing orders rose 1.2% month-on-month to 49.8. Contrary to expectations of a downturn due to policy tightening, US goods demand shows signs of re-acceleration, suggesting a potential soft landing or the end of an economic downturn. The PMI is a key indicator used to gauge the health of the manufacturing sector, with a PMI above 50 indicating expansion and below 50 indicating contraction.

However, Macquarie’s head of commodities strategy, Marcus Garvey, said in the group’s Feb. 7 note to clients that despite the bullish indicator, commodity prices have come under renewed pressure since Friday’s strong employment situation summary (jobs report) issued by the U.S. Bureau of Labor Statistics, with the knock-on effect of higher treasury yields and a stronger dollar – traditionally a bearish indicators for metals.

Indeed, the Bloomberg Commodity (BCOM) spot price index has been hovering just above December’s cycle lows of 465, but the Bank of America sees some upside, especially for aluminum.

“Therefore, it appears improbable that end demand will plummet anytime soon, suggesting a trend towards gradual growth in the initial demand for industrial commodities over the coming months,” Garvey said.

While the U.S. continues to lead that demand with an equal impact on rate cut expectations and the dollar, this should restrain the pace and degree of commodity price increases. “Nevertheless, commodity prices have a far more consistent relationship with global growth than with foreign exchange,” he said.

If a rise in commodity prices is triggered by an increase in global industrial activity, it could self-limit inflation on goods, thereby constraining central banks’ ability to ease measures further, Garvey argued.

However, he points out that this issue arises after the fact, indicating that it’s currently an opportune time to invest in commodities, particularly in sectors where the market fundamentals are steady or likely to strengthen rapidly. This is especially true in cases where market positions are becoming increasingly bearish, Garvey said.

Aluminum bright spot

One such bright spot is the aluminum market, with analysis by Bank of America Securities highlighting a market deficit driven by a slowdown in supply growth to around only 2.4% until 2025, compared to the 4.7% annual growth rate observed between 2011 and 2017. Meanwhile, consumption growth is expected to average 4% annually until 2030, reinforcing the market’s deficit outlook.

Russian sanctions have yet to significantly impact London Metal Exchange trading despite geopolitical tensions. However, the potential for tighter sanctions remains a concern that could reshape market dynamics.

According to the bank, the shift in European aluminum imports from Russia, with a reduction to 567,000 tonnes in 2023 from 840,000 tonnes in 2020, highlights a significant change in trade patterns, increasing the carbon footprint of imported aluminum.

China’s aluminum market has remained tight, reflecting strong internal and regional demand. China absorbed almost 1 million tonnes of Russian metal units last year, rerouted from Europe due to sanctions.

Rusal’s material now accounts for 90% of LME aluminum stocks, highlighting the exchange’s reliance on Russian aluminum amidst falling inventories.

Macquarie and Bank of America Securities stress the importance of commodities investors monitoring these developments closely. Macquarie recommends viewing dips in commodity prices, especially in markets with tight fundamentals like aluminum, as buying opportunities.

This strategy anticipates improving demand for industrial commodities in the coming months, led primarily by the US market.

Financial commentator Grant Williams last week highlighted to the Vancouver Resource Investment Conference (VRIC) the record levels of gold buying by central banks, arguing it indicates a strategic shift in reserve asset preferences against the backdrop of an evolving international geopolitical landscape.

“Amidst these changes, there’s an increasing interest in gold as a reserve asset. Central banks, recognizing the risks associated with large dollar reserves, are turning to gold for stability,” he said.

For the mining sector, these shifts present both challenges and opportunities. The rising demand for gold could boost the gold mining sector, necessitating increased investment and exploration. The strong policy supports the energy transition enjoy as the go-to tool for governments in their fight against climate change also means a bonanza of funds available and earmarked for resource and downstream beneficiation infrastructure.

However, the industry must also prepare for potential volatility in commodity prices and investment flows due to these macroeconomic changes.

A keynote panel discussion on Jan. 21 titled ‘Tectonic shifts in money and power,’ moderated by event host Jay Martin examined the theme of de-dollarization in depth. Panelists discussed how nations and central banks are diversifying away from the U.S. dollar in response to geopolitical events and the quest for more stable reserve assets.

“The world is looking to de-dollarize,” Williams said, highlighting an incremental but undeniable shift towards assets like gold while the global reserve currency transitions.

During his presentation, Martin highlighted three indicators that historically point to an empire’s decline: financial insolvency or instability. Historically, empires fall into financial trouble by spending more than they earn. To manage this, they print more money. This action devalues their currency and creates a gap between the wealthy (asset owners) and the rest.

Second, internal conflict emerges from the financial problems, leading to societal divisions. His research has found that these divisions turn minor issues into major conflicts, causing unrest.

Third, the emergence of external competitors speeds an empire’s decline when others challenge its dominance. “This signals the world that the empire is weakening, and new powers are rising,” Martin said.

He observed that these signs are visible today. He noted the massive debts, economic issues political polarization current superpowers. Additionally, new global forces are emerging to challenge the existing order. Martin suggests these signs could mean a shift in global power, similar to historical empire falls.

Continued reserve status?

The dollar’s continued status as the global reserve currency is increasingly in question, a series of panels heard, mainly because oil is priced in dollars, creating artificial dollar demand. However, the shift towards green energy, with goals of 50% adoption of zero-emissions vehicles by 2030 and 80% by 2050, poses questions about the future demand for the dollar in a scenario where oil trade is curtailed.

“Twenty per cent of last year’s oil sales were done in currencies other than the dollar,” Andy Schectman, president of Miles Franklin Precious Metals, said.

Schectman underlined the pivotal changes confronting the mining industry as the world re-evaluates the dollar’s dominance, coupled with the burgeoning debt estimated somewhere above US$40 trillion, not counting the estimated US10 trillion in bonds due this year and another US$140 trillion in unsecured obligations.

Part of the challenge is comprehending the enormity of the U.S.’s financial situation, says Schectman, emphasizing the difficulty in grasping the scale of a trillion compared to a million. “A trillion seconds ago was 31,688 years ago. The numbers are getting far too large,” he said.

Meanwhile, analysts argue that traditional remedies such as central banks raising interest rates to levels seen in the past, like the 18.5% under Paul Volcker (12th chairman of the Federal Reserve from 1979 to 1987), could today cause significant market disruptions across stocks, bonds, real estate, and banking.

“By weaponizing the dollar and pushing green policies, the U.S. might inadvertently be setting the stage for countries like China, Russia, and OPEC nations to pivot away from the dollar,” Schectman said.

Brent Johnson, CEO of Santiago Capital, with US$175 million in assets under management, argued that while the idea of moving away from the dollar is appealing, the practicalities are complex due to the overwhelming U.S. debt. This situation places the U.S. in a precarious position, where raising interest rates to attract investment in its debt might dangerously strain its economy.

“While there is a desire for de-dollarization, the ability to execute it is another matter,” he said, pointing out that this shift, driven partly by geopolitical tensions and the need to reduce reliance on a currency influenced by U.S. policies, signals a significant transformation in global financial dynamics.

The growth of trade alliances like BRICS that includes Brazil, Russia, India, China and South Africa further accelerates the trend. South Africa’s Foreign Minister, Naledi Pandor, announced on Wednesday that Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates have accepted invitations to join the BRICS group. These invitations, extended during a summit in Johannesburg last August, also included Argentina. The members see the addition of these countries to BRICS as a step towards updating what they consider to be an antiquated global order.

Contrarian view

In the ‘Global Macro Outlook’ panel, speakers like Danielle DiMartino Booth further emphasized the interconnectedness of global economies, focusing on the Chinese economy’s state and its impact on markets like Canadian housing. She pointed out the dual nature of demand and supply in shaping inflation, arguing that both must be considered in understanding economic trends.

Offering an opposing view to the arch of the discourse, Brent Johnson has developed his ‘Dollar Milkshake Theory,’ that explains how the U.S. could benefit from global financial turmoil. The theory suggests that despite the significant debt and economic challenges facing the U.S., global economic conditions will lead to a stronger dollar.

The core idea is that as economic troubles arise worldwide, investors will seek safety in the dollar, seeing it as a stable reserve currency. This influx of capital into dollar-denominated assets, like U.S. treasuries and stocks, will effectively “suck” global capital into the U.S., much like a milkshake straw pulls liquid upwards. This process will strengthen the dollar compared to other currencies.

Johnson’s theory also posits that this dynamic will occur even as the U.S. prints money and accumulates debt due to the dollar’s dominant role in the global financial system and the lack of viable alternatives. The result could be a paradoxical situation where the U.S. benefits from global financial instability, reinforcing the dollar’s supremacy despite its own economic challenges.

British Columbia’s free-entry staking system, which the province’s Supreme Court ruled last year does not meet the duty to consult, was one of the contentious issues discussed at a panel on the future of mineral exploration.

The system is at odds with the province’s status as a paragon of regulatory excellence, the conference heard on Jan. 24 during a panel moderated by Anita Balakrishnan of The Logic.

“Bad actors tarnish our industry’s reputation when their actions aren’t constrained by law,” activist Nikki Scuse, co-chair of the non-governmental organization BC Mining Law Reform Network and director of the Northern Confluence Initiative, said.

The Association for Mineral Exploration (AME) hosted the session for the first time seeking to provide a space for opposing viewpoints to be confronted and debated. The conference attracted over 6,200 attendees over four days.

Scuse pointed out the contradiction between B.C.’s adoption of the Declaration on the Rights of Indigenous Peoples Act in 2019 with the Mineral Tenure Act — the “archaic” 19th-century law that regulates claimstaking.

She highlighted the September Supreme Court ruling criticizing the province’s Chief Gold Commissioner for a “one-click” mineral claims process that falls short of meeting the Crown’s duty to consult with Indigenous groups and private landowners.

The court gave B.C. 18 months (now 14) to modernize the act.

Keerit Jutla, AME BC president, noted those efforts involving all stakeholders are underway.

Scuse illustrated the urgent need for reform by sharing anecdotes that included an Indigenous tourism operator in the Caribou region whose post-Covid business revival was jeopardized by nearby prospecting. In another case, a Kamloops couple’s quiet life was disrupted by a prospector, legally backed by a claim on their farm, demonstrating the legal regime’s failure to protect landowners’ rights.

These practices persist, Scuse noted, with some entities brazenly staking claims on Indigenous lands despite legal challenges. She took a firm stance on broader environmental issues, like mining’s intrusion into vital salmon watersheds, and pushed for a shift from gold to sustainable minerals like copper. Scuse’s call for a holistic mining approach includes land use, biodiversity, and long-term environmental stewardship.

In defence of the industry, Jutla, who has a background in Aboriginal law, argued that the sector and provincial regulations do a good job of protecting the environment. He emphasized B.C.’s strong regulatory framework, particularly in environmental stewardship, recognized internationally for its comprehensiveness.

He advocated for transparent, context-specific consultations, especially with Indigenous communities, and supported the practical implementation of UNDRIP principles.

Jutla also stressed the need for distinct conversations at different stages of the mining process and expressed concerns about NGOs potentially overshadowing Indigenous rights holders’ agendas. He highlighted the industry’s commitment to environmental sustainability and its efforts to balance environmental concerns with the practical realities of mining.

“The world needs a stable, free, democratic, high-standard producer of the metals and minerals needed to battle climate change,” Premier David Eby declared as he announced the strategy’s first-phase rollout. He underlined B.C.’s “generational opportunity to seize, to build wealth and protect the planet simultaneously,” to rousing applause.

The launch of the plan, which was only broadly outlined Monday, comes after Quebec, Ontario, Saskatchewan and Manitoba have already laid out their own strategies.

The strategy comprises nearly a dozen first-phase action points, including developing a B.C. critical minerals atlas; engaging and aligning with First Nations on strategy and infrastructure; and opening a dedicated project advancement office to offer streamlined support services — including a concierge, project management, and First Nations negotiators.

The strategy further aims to tackle obstacles impeding project development and workforce stability. Additionally, for critical mineral geoscience initiatives, C$3.9 million is allocated over four years, starting in 2022-23. A new critical minerals advisory committee will provide guidance.

Fiscal policy missing

However, the Mining Association of British Columbia’s (MABC), president and CEO Michael Goehring, suggests the premier may have his priorities backwards. The association, which represents B.C.’s steelmaking coal, metal and mineral producers, smelters and advanced development companies, is concerned that the strategy lacks a crucial component: a competitive fiscal policy.

In particular, he cited the government’s new output-based carbon pricing system, which was announced last fall and will come into effect in April, as a barrier to mining.

“The B.C. government’s shift to an ‘output-based carbon pricing system (OBPS) spells trouble,” Goehring told The Northern Miner in an interview.

He said that while the mining and smelting sector in B.C. favours carbon pricing, it faces the highest carbon tax rates in Canada (up to three times that of Ontario or Quebec) and globally despite having the lowest greenhouse gas emissions. Compounding matters, the industry can’t reduce emissions further at present because technologies for zero-emission haul trucks are not expected to be market-ready until the end of the decade.

“It is essential that the carbon tax rates for existing and future critical mineral mines in B.C. are competitive with those in other provinces. Otherwise, the OBPS could negatively affect investment decisions in B.C., counteracting the objectives of the province’s critical minerals strategy,” he said.

AME BC president and CEO, Keerit Jutla, agrees that while the first-phase strategy announcement was a “step in the right direction,” he would also like to see more language on things that matter. “We understand this as a preliminary phase-one strategy. We anticipate a more substantive announcement with complete details to be released soon,” he told The Northern Miner.

Government has tasked the B.C. Ministry of Energy, Mines, and Low Carbon Innovation (AMLI) with filling out the details of the strategy, giving it a C$6 million budget and three year timeline.

“We appreciate the government’s acknowledgement that more action is required to facilitate the development of new critical mineral projects. It is imperative that greater emphasis is placed on competitiveness and the fiscal and regulatory policies that will attract investment,” he said.

Jutla stated that while awaiting further developments, the members of AME BC will collaborate with the newly formed Critical Minerals Project Advancement Office. They will advocate for more assistance with permitting and regulatory procedures and seek advice on cooperating effectively with First Nations.

Infrastructure investment

In a Jan. 8 release, the MABC argued up to C$36 billion of investment (which compounded over several decades could amount to C$800 billion) is at risk in the province because the development of 16 proposed critical mineral mines hinges on the provincial government establishing more competitive fiscal and regulatory policies.

Premier Eby says under EMLI Minister Josie Osborne the ministry has achieved a 52% reduction in the backlog of permit applications.

Eby’s announcement follows on the heels of a Jan. 16 announcement of a C$36-billion provincial investment in the next decade for expanding the province’s electricity infrastructure, critical for mining industry expansion.

Momentum is building elsewhere for the local critical minerals sector. In late 2023, B.C. announced a C$1.1 billion partnership between E-One Moli and the governments of B.C. and Canada to bring lithium-ion battery cell production to Maple Ridge, part of Metro Vancouver, and create 450 permanent jobs.

In the 2022 budget, Ottawa allocated about C$3.8 billion to its critical minerals strategy.

Exploration spending

Premier Eby announced the official government 2023 figures for exploration spending in the province, revealing a strong performance. Total mining production in 2023 was C$15.9 billion, and exploration spending amounted to C$643.5 million.

He said that exploration has amounted to C$2.5 billion over the last five years, with mining production totalling C$54.6 billion. B.C.’s mining sector employs over 35,000 workers, contributes C$7.3 billion to gross domestic product in 2023, and is a significant exporter.

The activity in 2022 included C$3.7 billion from the province’s mines and smelters, which purchased materials, goods and services from thousands of businesses, according to The Mining Association of British Columbia’s (MABC) ‘One Province, One Economy’ report, released on Thursday.

“Mines and smelters provide thousands of well-paying family-supporting jobs and they sustain a large supply chain of nearly 4,000 small and medium-sized businesses in urban centres, small towns and an increasing number of First Nations communities,” MABC president and CEO Michael Goehring said in a statement.

Sponsored by the MABC and the Mining Suppliers Association of B.C. (MSABC) and prepared by iTOTEM Analytics, the report flags Metro Vancouver as making the lion’s share contribution, with 1,125 mine suppliers in 18 communities receiving C$1.4 billion.

The mining sector supported 200 urban, rural, and First Nations communities. Among the rural municipalities, Kamloops, Prince George, and Sparwood stood out with substantial purchases totalling C$377 million, C$237 million, and C$188 million, respectively.

The report emphasized the sector’s engagement with First Nations, with 150 affiliated businesses providing goods and services worth approximately C$520 million, a C$65 million increase from the C$455 million recorded in 2021, reflecting the growing involvement of First Nations in the mining supply chain.

BC’s mining sector also contributed to community investments, with C$5.7 million distributed to about 260 community and First Nations organizations in 2022. The province’s potential in critical mineral projects is immense, with 16 of them in advanced stages of development, signalling C$36 billion in new investments.

These projects, alongside five new precious metal mines, reflect nearly C$2 billion in additional investments, showcasing the sector’s pivotal role in economic development and clean energy transition.

The successful drilling program in the proposed layback area near the open pit mine demonstrates the potential to replenish some of the mine’s diminished gold by integrating additional surface oxide gold found nearby, Sylvain Guerard, Orla’s senior vice president, said in a news release.

Located north of the Camino Rojo mine, drilling in this area has confirmed historical results, showing consistent grade along the property boundary. Highlights include 1.09 grams gold per tonne over 21 metres to the west and 0.85 gram gold over 76 metres to the east.

The drilling beneath the current open pit has unveiled structurally controlled oxide mineralization about 50 metres below and 15 metres southeast of the current pit boundaries. Notable results here include 1.16 grams gold per tonne over 67.1 metres and 0.86 grams gold over 35.1 metres.

Earlier this week, Orla reported record production of 121,877 oz. gold from the mine in 2023, slightly above guidance of 110,000-120,000 ounces. It expects to produce 110,000-120,000 oz. from the mine this year at an all-in sustaining cost of $875-$975 per ounce. It has not yet disclosed the all-in sustaining cost figures for 2023 and is scheduled to release its fourth-quarter results on March 20.

The drill results are part of a 6,500-metre program Orla completed at Camino Rojo last year to explore for additional oxide mineralization. This included 2,500 metres in the adjacent Fresnillo property, or ‘Layback Area,’ and 4,000 metres targeting deeper oxide gold mineralization extensions beyond the current open pit.

Orla has secured a layback agreement with Fresnillo, allowing it to expand the Camino Rojo oxide pit into Fresnillo’s adjoining concession. This deal not only allows Orla to mine significant additional oxide and transitional heap leachable resources but also preserves Fresnillo’s rights to the future development of the sulphide resource. The deal is expected to notably increase Orla’s mineral reserves and enhance the mine’s value without requiring changes to the current infrastructure.

These results pave the way for the 2024 near-mine drill program, which is still being finalized.

BMO Capital Market mining analyst Andrew Mikitchook assigns an ‘outperform’ rating to Orla with a target price of C$7.50. Shares on Thursday closed 5.7% higher at C$4.47, having touched C$3.53 and C$6.90 over the past 12 months. It has a market capitalization of C$1.4 billion.

Mikitchook expects Orla to publish an updated resource before the end of June, which will incorporate drilling from the layback area for the first time.

“We remain cautiously optimistic following the high-grade intercepts located down-dip and underneath the open pit,” he wrote in a note to clients, adding the results demonstrated potential to extend the mine life.

Camino Rojo has measured and indicated oxide resources of 84.4 million tonnes grading 0.72 grams gold per tonne for 1.9 million oz. of metal. It also has a sizeable sulphide component of 258.8 million tonnes grading 0.88 grams gold per tonne for 7.3 million oz. of metal. Proven and probable reserves total 58.5 million tonnes at 0.74 gram gold per tonne for 1.4 million ounces.

Elsewhere in the portfolio, in December, Panama’s government rejected its request for permit extensions for the Cerro Quema gold project and cancelled the mining concessions by designating the area a reserve. Orla has halted further investment in Panama, where the government recently shut down First Quantum Minerals’ (TSX: FM) Cobre Panama mine.

The project’s recent declaration of a 59 million inferred tonnes grading 1.12% lithium oxide for 1.6 million tonnes of lithium carbonate equivalent firmly placed it on the North American map of emerging lithium deposits, ranking among the most significant hard rock deposits on the continent.

“Winsome is one of the very few lithium developers around the world with a large high-quality resource in a Tier 1 mining jurisdiction, which can integrate directly into the North American electric vehicle supply chain,” Chris Evans, Winsome’s managing director, said in an interview with The Northern Miner.

As the energy transition accelerates, Quebec is becoming a key player due to its rich lithium deposits, crucial for electric vehicle batteries. Companies like Perth-based Winsome strategically target Quebec for its mining-friendly environment and to tap into the need for local lithium to feed the region’s fast-developing EV supply chain.

Noting the heavy presence of Australian companies exploring in Quebec, Evans says they are the logical people to lead the Quebec projects forward, given their experience at home with hard rock lithium mining.

Evans brings to Winsome nearly two decades of experience managing large construction and mining projects in various commodities, with a strong focus on lithium and civil engineering. He served as the chief operating officer responsible for building and operating the Pilgangoora lithium mine and processing facility, later acquired by Pilbara Minerals (ASX: PLS) for over A$200 million. Later, as managing director of a lithium development company listed on the ASX, he played a key role in establishing and maintaining important relationships with finance and off-take partners.

Winsome’s ability to quickly move from discovery of Adina in 2017/18 to its first resource this year is a testament to the company’s exploration strategy, Evans said. It took 27,600 metres of drilling to establish the initial resource, with five rigs currently conducting infill and extensional drilling at the site.

Over 25,000 metres of completed infill and extensional drilling at Adina, with assay results expected in early 2024, are set to enhance the project’s initial resource estimate in the first half of 2024.

The company has identified a 3.1-km strike of lithium mineralization across two primary zones, Main and Footwall, with significant expansion potential in all directions, Evans said.

Ongoing drilling is exploring these extensions, linking Adina Main with adjacent areas. At the same time, the company is advancing preliminary development studies, including initial mine designs and environmental assessments, in collaboration with local Eeyou Istchee James Bay Cree and Quebec stakeholders.

Process engineering plans are also moving forward, leveraging previous successful metallurgical testing, with further core collection scheduled for the current quarter.

Evans believes the Adina project’s unique composition of two nearby spodumene-bearing pegmatite zones positions it for efficient development as a significant mining operation.

While Patriot Battery Metals (TSXV: PMET; ASX: PMT) has garnered attention for its nearby Corvette discovery, made in late 2021, Evans notes Winsome made its find several years earlier and says the discoveries were unrelated.

Looking ahead, Winsome has prepared a busy plan for Adina. With a financial war chest of A$60 million, the company is planning over 50,000 metres of infill and step-out drilling in 2024.

“As we progress into 2024, Adina is poised to become a cornerstone in the North American lithium supply chain,” Evans said.

Winsome shares have been on a rollercoaster ride over the past 12 months, touching a high at A$5.43 and a low at A$3.10. It closed at A$3.74 Friday, giving it a market capitalization of A$11.3 billion.

The latest installment from JCHX bolsters Cordoba’s financial standing as it seeks to reorganize its debt and advance the project near Bogotá and Medellín past a feasibility study and environmental impact assessment (EIA) submitted in December. The funding kickstarts detailed mine engineering targeted for completion by the end of June.

Cordoba closed at C$0.36 on Thursday in Toronto, up 4.3%, for a market capitalization of C$32 million. The shares had traded 23% higher early in the session, although they’re still down 27% over the past 12 months.

The open-pit project, expected to become Colombia’s largest copper mine, is a key component of the San Matias land package and the government has declared it a “project of national interest.” JCHX Mining Management acquired a half interest in the project in late 2022 for $100 million to be paid in three instalments. The final payment of $20 million is due after approval of the feasibility study and EIA.

Ivanhoe-backed

Cordoba used a portion of the funds to clear a $4 million bridge loan previously extended by its majority shareholder, Ivanhoe Electric (TSX: IE), as a convertible debenture.

Further, Cordoba is slated to repay an equal-value short-term loan from JCHX as outlined in a Nov. 8 agreement.

The Alacran feasibility study details a $420.4 million copper project with a 14.2-year mine life.

The study projects an after-tax net present value of $360 million, an internal rate of return of 23.8%, and a three-year payback period. These figures largely align with a 2022 prefeasibility study.

The project boasts probable reserves of 97.9 million tonnes at 0.42% copper, 0.24 grams gold per tonne and 2.69 grams silver per tonne, yielding 797.2 million lb. of copper, 550,000 oz. of gold, and 5.35 million oz. of silver.

The update extends the mine’s life well into 2028, far beyond its original 12-year expectancy that was supposed to end in 2020.

The news pushed the issuer’s stock 5% higher in early afternoon trading in Toronto. Despite the intraday bump to C$0.62 apiece, the stock is down 46% over the 12 months, touching C$0.53 and C$1.24.

Prepared by SRK Consulting, the 2023 mineral reserve and resource estimate now shows measured and indicated resources of 6.1 million tonnes grading 98 grams silver per tonne for 19 million oz. and a recoverable proven and probable reserve of 5.08 million tonnes at 93 grams silver per tonne for 11.95 million oz. metal (as opposed to contained metal of 15.19 million ounces).

In a statement, management explained that in parallel with the updated reserve statement, the operation is shifting from relying on low-grade, high-cost material called ‘pallacos’ to higher-margin third-party sourced ore and FDF (fines deposit facility) material. This shift has led to third-party material comprising a major portion of the mine’s processed tonnes and produced ounces.

Andean has increasingly relied on third-party material for ore processing, with such sources now comprising over 60% of processed tonnes and nearly 70% of produced ounces. In comparison, output from its own lower-grade pallacos has dropped to 30%.

Andean has negotiated agreements for substantial tonnage of higher-grade material for San Bartolomé and plans to continue sourcing from third-party sources in 2024.

The company believes the project has the geological potential to extend the operational lifespan further by improving segments of the high-grade inferred resource. Currently, the inferred resource entails 965,000 tonnes grading 167 grams silver per tonne for 5 million oz. of contained metal.

Andean says it is actively engaged in locating and acquiring new oxidized materials. These materials, typically unsuitable for processing in standard flotation plants in the region, represent an opportunity for Andean to diversify and enhance its mineral processing capabilities.

Earlier in December, Andean reported a fire at its Golden Queen mine in Kern County, California, was contained within an hour at the secondary crusher. There were no injuries, and the company continues investigating the cause and assessing the damage.

Despite the temporary shutdown of the secondary crusher, which affects new ore stacking, Andean on Dec. 14 assured continued metal production through leaching processes. The company is adjusting its short-term mine plans and is backed by insurance, including business interruption coverage.

The acquisition boosts Genesis’s asset base and underpins its five-year strategic plan due early in 2024, mining analyst Tim McCormack of Canaccord Genuity said in a note to clients on Friday. The deal’s cost-effectiveness is notable at C$79 per resource oz. of metal, he said.

It compares favourably with Northern Star Resources’ (ASX: NST) recent acquisition of Strickland Metals‘ (ASX: STK) Millrose project at about C$158 per oz. and Ramelius Resources‘ (ASX: RMS) acquisition of Musgrave Minerals at around C$182.90 per ounce. The deal involves a payment of C$13.45 million in cash and the issuance of 21.9 million new Genesis shares.

Genesis’s resources will increase by about 4% to 15 million oz. upon completion, and its reserves will stand at 3.9 million ounces. The company aims to progress the acquired projects into reserve status.

“Both deposits have shallow mineralization, low strip ratios and meaningful quantities of oxide ore, which can potentially enable higher milling rates/productivity,” McCormack said in his note.

McCormack expects an update from the company to detail its strategy to reach a targeted production rate of 300,000 oz. per year by September 2026. It is to include a five-year production and all-in-sustaining cost outlook, capital growth requirements, environment, social and governance initiatives, and exploration priorities.

The Bruno-Lewis project, located near Genesis’ 2.9-million-tonne-per-year Laverton mill, contains a Joint Ore Reserves Committee-compliant resource across all categories of 12.06 million tonnes at 1 gram gold per tonne for 408,000 oz. metal. It includes an oxide resource of 3.2 million tonnes at 1.2 grams gold for 119,000 ounces.

The Raeside underground project, close to the 1.4-million-tonne-per-year Leonora mill, comprises a resource across all categories of 3.1 million tonnes grading 2 grams gold for 202,000 oz. It also features an oxide resource component of 600,000 tonnes at 1.9 grams gold for 34,000 ounces.

Genesis managing director Raleigh Finlayson considers Bruno-Lewis and Raeside to be prudent bolt-on acquisitions.

“With more than 12 million tonnes of open-pit resources, Bruno-Lewis has the potential to supplement the eventual, sustainable re-start of our currently idled Laverton mill,” Finlayson said in a news release.

The acquisition is expected to close by March 2024, subject to various approvals, including ministerial consents under the Mining Act.

Genesis says it is well-positioned to fund its growth ambitions with no debt and a significant capitalization.

McCormack expects Genesis to be essentially free cash flow-neutral over the balance of 2024, after assumed capital spending of C$72.5 million and C$9 million on exploration.

At A$1.79 apiece, Genesis shares closed 2.5% higher in Sydney Friday, having traded between A93.5¢ and A$1.91 during the past 12 months. The company has a market capitalization of C$1.8 billion.

The collaboration could earn Nuton a 40% stake in the project on the site of the past-producing Sacaton mine south of Phoenix. It also injects up to $33 million in non-dilutive financing into Sonoran when current capital-raising conditions for junior miners are tough, president and CEO George Ogilvie told The Northern Miner in an interview.

“It’s a phenomenal outcome for us,” Ogilvie said. “This collaboration provides us with access to Nuton’s cutting-edge technology and aligns it with the technical and operational expertise of a global mining leader.”

The project, ranked by S&P Global in August as one of the top 10 copper developments in the United States by resource size, illustrates how mining companies are returning to old mines to use better technology and meet the growing need for metals.

Rio Tinto invested C$30.5 million for a 7.4% stake last year in the project that may use technology developed by its Nuton unit. The funding means Sonoran can avoid issuing new shares to raise capital, which would dilute existing shareholders’ stakes. Rio-backed Nuton’s involvement lends credibility and financial stability to the project, which may produce as much as 50,000 tonnes a year of copper cathode.

Sonoroan shares closed on Thursday at C$1.66 apiece. They’ve lost 5.7% over the last 12 months when they traded from C$1.30 to C$2.40. The company has a market capitalization of C$181 million.

If Nuton exercises its option, Sonoran could receive a substantial payout based on a percentage of the project’s base case net present value. The amount would cut the equity it needs to raise, reducing the financial burden on the company and its shareholders.

It will be the first commercial application of Rio’s Nuton technology, Ogilvie said, stressing the company will do its best to prove it can be applied elsewhere.

“The partnership implies a shared commitment from both Sonoran and Nuton to the project’s success,” he said. “This backing is likely to facilitate smoother project execution and technological implementation.”

Integrating Nuton’s technology into the Cactus project carries minimal risks because it can be used in standard heap leaching and SX-EW processes, he said. These are already well-understood and established in the mining industry.

Substantial resource base

In October, Arizona-Sonoran nearly tripled its measured and indicated resource at the Cactus porphyry project. Cactus has 446 million measured and indicated tonnes grading 0.58% copper for 5.2 billion lb. of the metal, according to a resource update on October 16. That compares with 151.8 million measured and indicated tonnes at 0.53% copper in a resource issued in April last year.

The upgrade for the combined Cactus, Stockpile and Parks/Salyer deposits is to form the basis for a pre-feasibility study expected early next year, Ogilvie said.

The project aims to be a mid-tier producer with the potential for a phased expansion.

Inferred resources are now 233 million tonnes grading 0.47% copper for 2.2 billion lb. of the metal compared with 450 million tonnes at 0.54% copper for 4.9 billion lb. copper in a resource dated April last year.

Sonoran plans to release a pre-feasibility study on Cactus in early 2024 and a final feasibility study by the end of next year. Also due in 2024 is Nuton’s decision to exercise its option, secure additional permits, formalize the joint venture structure with Nuton, and finalize the project’s financing and development strategy.

The Mainspring discovery south of Cactus will be aggressively drilled to develop an inferred resource early in the year and upgrade it to an indicated resource by mid-year.

District potential

The advent of Nuton’s technology at Cactus potentially hints at broader regional collaboration opportunities. Ogilvie says it doesn’t take much imagination to do back-of-envelope calculations about what Nuton could mean for the neighbouring Ivanhoe Electric (TSX: IE) -owned Santa Cruz project.

The mineralized system that Ivanhoe Electric is exploring appears to be an extension of the system on which the Cactus project is based. Ogilvie noted that if the Nuton technology proves successful at the Cactus site, there’s a high likelihood that it could also apply to the Santa Cruz project, given the probable similarity in mineralogy and geology.

Ogilvie says regional consolidation remains a compelling future opportunity under the right circumstances. Still, he suggests combining the Cactus resource (with its 7.5 billion lb. copper) and Santa Cruz (with about 10 billion lb. metal) could create a world-class asset, potentially housing around 20 billion lb. of the red metal.

This asset would be particularly significant given its location in the southwest of the US on private land with access to water, making it an attractive prospect for major copper producers globally.

The brownfield Cactus site has about $30 million of infrastructure and is at an advanced permitting stage with access to water and approved water rights, Sonoran says. The project is in an industrial park connected to nationwide highways, railroads and state power.

Cross’s father, George Carmichael Cross, launched the George Cross News Letter on Apr. 7, 1947.

Born in 1932, the younger Cross entered the family business in 1952, rising to publisher by 1966. As its lead writer and researcher, he embodied the newsletter’s commitment to “reliable reporting,” focusing on the junior mining sector’s activities and discoveries, as reported on the Vancouver Stock Exchange.

His newsletter became an indispensable source of mining news, contributing to the development of real-time access to reliable information about Canadian mining activities worldwide.

The newsletter tracked mining and exploration companies, publishing 13,388 issues before Cross retired in 2000. It often broke mining news before anyone else, like the 1980s Hemlo gold discovery in Ontario.

Mark O’Dea, founder and executive chair at Oxygen Capital, remembers Cross as “cut from the cloth of a different era,” and someone whose blunt honesty steered towards truth and usefulness.

“George told you what he thought,” O’Dea told The Northern Miner by email. “You were either good with that, or you weren’t. I liked that about him.”

Cross was inducted into the Canadian Mining Hall of Fame in 2007, attesting to his profound impact on the industry. However, his legacy was not solely built on his professional acumen but also on his personal touch—his strength of character, candid advice, and ability to show up when it mattered most. Whether it was with a bag of chocolates, a set of seed potatoes, or his century-old Christmas fruit cake recipe, Cross’s actions reflected a deeply held belief in the power of community and tradition, O’Dea said.

Cross was known to be generous and thoughtful. His monthly breakfasts at a favourite restaurant he referred to as “the Dungeon” became a hub for sharing his encyclopedic knowledge and connecting people, O’Dea fondly recalls.

He also hand-delivered his newsletter, a practice mining veteran Bruce McLeod recalled on the social media platform X, noting that required him to critique his press releases before dawn.

Cross’s formal education included studies at the University of British Columbia Faculty of Commerce.

His friends and business associates remember Cross as not only the name behind a newsletter but also as a man who lived his life with vigour and purpose. He cherished his family and enjoyed skiing, gardening, and the company of good scotch with friends. The philosophy drove his professional and personal travels, “Travel more to learn more, to earn more, to travel better, to learn faster,” according to the family obituary published in the National Post on December 2.

The mining community reveres him as much for his support and mentorship as for his journalistic integrity. X user Riley Gould, an investment advisor with Haywood Securitues, recalls the time George gifted him the book ‘No guts no glory’ before they headed out for a summer of field work in the Yukon. Besides encapsulating Cross’ ethos, “he insisted it was the perfect book to pair with time in the bush… He wasn’t wrong.”

Cross leaves behind his children Patti, Susan, George, and Paul Duchart, and six grandchildren.

Cross donated his newsletter archive to the University of British Columbia so it’s accessible for future generations.

His parting advice to all is, “Learn the value of compound interest.”

Hole iRH23-42A returned 116.3 metres grading 10.1% zinc and 0.3 gram gold per tonne, signalling resource expansion potential in the storied mining district of Eureka County, Nevada.

Peter Bell, a mining analyst at Canaccord Genuity, struck an optimistic tone in a note to clients, saying drilling continues to steadily expand the Ruby Hill footprint.

“The latest drill results from i-80 Gold are mapping a robust growth path for Ruby Hill, consistent with the company’s track record of seven discoveries since the previous year,” Bell said. “This progress is a strong indicator of the project’s potential to achieve resource status and expand its polymetallic footprint.”

i-80 Gold’s drill program at Ruby Hill is targeting high-grade mineralization in the Blackjack and Hilltop zones. Drilling recently uncovered significant high-grade mineralization from the first hole on the east side of the Archimedes pit. This suggests potential for further expansion at depth and to the south.

The drilling strategy includes detailed metallurgical work to understand the nuances of the polymetallic deposits. An unnamed third party, eyeing a minority joint venture stake in Ruby Hill, is financing this phase.

This program extends to the FAD deposit, 2 km south of Ruby Hill, building on promising preliminary drill results.

i-80 Gold is also laying the groundwork for an underground mine at Ruby Hill. The plan will involve building a ramp from the Archimedes open pit to access the mineralization below, with construction expected to start sometime next year. This development will facilitate definition drilling and mining operations, pushing the Ruby Hill project into its next growth phase.

i-80 Gold’s drilling continues in support of a planned resource statement during the first half of 2024, Tyler Hill, chief geologist at i-80 Gold, said in the release.

The company released a preliminary economic assessment on its Granite Creek asset, also in Nevada, in early November.

In September, the gold miner inked a deal with Nevada Gold Mines, a partnership between Newmont (TSX: NGT; NYSE: NEM) and Barrick Gold (TSX: ABX; NYSE: GOLD), which will help it create a major mining complex in the precious metals-rich southwestern state.

The company closed 0.5% lower on Monday at C$2.25. The stock is down 42% over the past 12 months after touching C$1.70 and C$4.22. It has a market capitalization of C$656.7 million ($483m).

The company’s email distribution channels were compromised, resulting in a crudely worded message and an inappropriate image of Elon Musk sent to subscribers. The company immediately issued an apology on social media, citing a cyber attack against its third-party website provider, which it is investigating.

“If you are subscribed to our website email alert service and have received an email communication with an offensive message, we apologize. There appears to have been a cyber attack against our third-party website provider, which is currently being investigated,” the message reads, as supplied to The Northern Miner by Anglo’s group head of corporate affairs, James Wyatt-Tilby.

The incident once more throws the growing concerns over digital security in the mining industry into the limelight.

This cyber attack isn’t limited to Anglo American. Last December, Copper Mountain Mining — now owned by Hudbay Minerals (TSX: HBM; NYSE: HB) — faced a ransomware attack that led to a six-day shutdown of its Canadian treatment plant.

Similarly, Aurubis, a Hamburg-based copper recycling firm, reported an attack last year, part of what was described as a more significant assault on the metals and mining industry.

The frequency of such cyber-attacks is alarming. The January 2022 EY Global Information Security survey reported that 54% of mining and metals companies experienced significant cyberattacks, with 55% of executives expressing concern over their ability to manage such threats.

Firms like Recorded Future and Dragos have also noted an uptick in ransomware attacks targeting the industry, particularly those focusing on mining and water treatment plants.

These incidents underscore the increasing need for strong cybersecurity measures in the mining industry. As digital vulnerabilities are revealed to companies like Anglo American, the sector faces wake-up calls to re-evaluate and strengthen its defences against such sophisticated cyber threats.

Activists with Greenpeace International have been ordered to vacate a research vessel charted by The Metals Company (NASDAQ: TMC), a pioneer in seafloor polymetallic nodule exploration in the central-eastern Pacific between Hawaii and Mexico.The Nov. 30 ruling also imposes a €50,000 fine on the environmental organization for each day it defies the order, up to a maximum of €500,000. It does, however, allow Greenpeace to continue its protest, as long as it’s at a distance of at least 500 metres.

The vessel, engaged by TMC’s subsidiary, Nauru Ocean Resources (NORI) for environmental assessments, faced a week of disruptions from Nov. 23 by Greenpeace activities, which a Dutch court deemed unsafe and unlawful. NORI is obligated under an International Seabed Authority (ISA) contract to evaluate the deep ocean’s health after a nodule collection test last year.

“We respect the right to protest, but the safety of our legally sanctioned studies comes first,” stated TMC CEO Gerard Barron in an email to The Northern Miner. “Greenpeace’s compliance with the order is welcomed, as we continue our vital research for informed global decision-making.” A Dutch court held jurisdiction over the dispute because Greenpeace is headquartered in Amsterdam.

The confrontation brings to the fore the tension between environmental activism and the advancement of deep-sea exploration technology. With 168 ISA member states plus the EU emphasizing evidence-based decisions, TMC’s work exemplifies the delicate balance that must be found between economic interests and environmental protection in this emerging sector of mining.

The Greenpeace incident came to a head when, after five days of non-stop kayaking activity around the vessel, five activists boarded the MV Coco on Nov. 25 and disabled its A-frame hoist/crane. That caused delays to TMC’s research and NORI claims the protest has been costing it $1.5 million per day.

Despite being ordered to leave the vessel, Greenpeace hailed the court’s announcement as a victory for its right to protest and as a blow to the deep sea mining industry. “The Metals Company has never been interested in scrutiny, and they can’t stand that Greenpeace is watching and opposing them at every turn,” said Mads Christensen, executive director of Greenpeace International.

As a result of Greenpeace’s actions, TMC and NORI are considering seeking compensation for financial losses incurred. 

Greenpeace has openly criticized TMC’s work as “anti-scientific.” TMC counters that Greenpeace’s anti-science charge is hypocritical, citing its engagement of top marine scientists and collaborative data sharing with public institutions to transparently assess and potentially minimize the environmental footprint of nodule collection compared to traditional mining.

“Our work could redefine how we source battery metals, with potentially lesser impacts compared to traditional mining,” Barron said. “It’s vital that we base our environmental stewardship on solid evidence.”

Scientific research interrupted

Greenpeace has vowed to continue its protests every time TMC attempts to advance its mining application, aligning with the political calls for a moratorium from 24 countries.

TMC’s current work aims to assess ecosystem function and recovery on the seafloor one year after test mining. It’s been active at the project for 12 years.

NORI conducted a successful test last fall, collecting over 3,000 tonnes of polymetallic nodules. However, the company has been criticized for its environmental risk management practices after a leaked video late last year showed waste sediment being dumped into the ocean. An ISA investigation found no rule breach but criticized NORI’s ‘risk awareness,’ citing the company’s failure to follow its risk management procedures.

Environmental groups and some countries call for a halt or ban on deep-sea mining, warning of unacceptable risks to marine life and ecosystems. A recent report also suggests that the environmental costs of seabed mining could outweigh the benefits.

Using an array of equipment like remotely operated vehicles and marine sampling tools called box/multicores, academics from various marine research institutions aim to collect biological samples to assess whether there has been a significant change in the makeup of seafloor communities and how much they’ve been affected by the mining.

“Last year’s studies on the seafloor sediment plume have already highlighted that concerns by various non-governmental organizations grossly overstate how far this mud would spread from the direct mining area,” Barron said.

“This latest campaign will help determine if conjecture on the impacts on seafloor organisms is similarly overblown. I can only imagine that our putting to bed of this conjecture is why Greenpeace would seek to disrupt further scientific research.”

This research is not only a legal requirement by the ISA but also a collective effort to enrich the global repository of marine knowledge, the company argues.

Focus on transparency

In response to the boarding incident, TMC has reiterated its commitment to the safety of its crew and the activists involved. The company said it adheres to strict operational protocols, ensuring no harm came from Greenpeace’s unauthorized presence.

Barron said TMC’s exploration efforts, grounded in the United Nations Convention on the Law of the Sea principles, aim to pave a path for responsible resource use, promising a future where the environmental impacts are minimized and developing states benefit from oceanic resources.

The incident also highlights the broader conversation about the ocean’s role in the future of mining. As demand for battery metals soars, driven by the global push towards green energy, the industry must navigate the fine line between resource extraction and environmental conservation. Barron hopes that TMC’s approach, emphasizing open-source data and collaborative research, could set a new standard for responsible deep-sea mining.

The CEO says the company is aware that the world’s eyes are on them. “We are focused on a resource belonging to all humanity. Our approach emphasizes transparency, partnerships, and stakeholder engagement,” he said.

“We believe nodules could be a better alternative to land mining and are working across academia and industry to gather the data to assess whether this hypothesis holds true and sharing this and our plans with the world.”

Samples assayed up to 38.2% copper in an underexplored area, are fast becoming the focus of an aggressive exploration program planned for 2024.

“The copper and zinc grades we’ve found are exceptional. We’re looking at major potential here at Tempest,” American West managing director Dave O’Neill said in a release.

American West, which this summer earned an 80% interest in the project from 20%-partner Aston Bay Holdings (TSXV: BAY; US-OTC: ATBHF), has traced rich gossans over 4 km, hinting at a large-scale mineralized system. Ground electromagnetic (EM) surveys align these gossans with aerial EM anomalies, presenting clear drilling targets, the company said.

Since gossans result from the oxidation of sulphide mineral deposits, they can guide geologists to sulphide-rich ore bodies that may be economically viable for mining. The presence of a gossan can lead to more detailed exploration techniques to determine the size and grade of the ore body.

American West believes the Tempest discovery is on a structural unconformity, a setting ripe for base metals discovery, since the contact between two geological terranes is highly prospective, with the basement rocks being an important potential source of metals and the contact, a zone of high permeability for mineralizing fluids, American West said.

The upcoming exploration agenda is busy, with geochemical sampling and advanced EM surveys on the books, targeting the anomalies.

The forward program for the Storm project includes ongoing ore sorting and beneficiation, resource modelling and estimation, environmental reporting, and logistical planning for the 2024 exploration program.

The partners reported in August a major copper discovery at the Storm property.

The Storm copper project on Somerset Island, Nunavut, has been the focus of intensive exploration efforts. Drilling aims to uncover hidden gravity targets beneath the established near-surface mineralization.

Sydney-traded shares opened Tuesday down 2.35% at A12.7¢ per share, taking the 12-month trend to 1.6% after touching 4.3¢ and 37.5¢. It has a market capitalization of $44.5 million.

As per the agreement, Empress will receive 3.5% of payable gold production from Galaxy for the first 8,000 oz., reducing to 2% after that until 20,000 oz. — or 20 years — is reached. The payable gold will be bought at 20% of its spot price.

The Galaxy and Princeton deposits underpin Golconda’s flagship project, presenting distinct mining prospects. Galaxy is a substantial pipe-shaped deposit with a 35-metre thickness and a 100-metre strike, suggesting deep, vertical potential for gold extraction.

In contrast, Princeton has a steep dip with a 5-metre thickness extending 300 metres in strike length, indicating a need for specialized underground mining techniques, according to the company.

Empress Royalty’s investment aims to boost the mechanized cut-and-fill mining operations, driving the mine’s expansion to increase production and enhance the long-term profitability for both Golconda and Empress.

David Talbot, a mining analyst at Red Cloud Securities, views the investment positively. He estimates a pre-tax net present value, at a 5% discount, of $10.7 million for Empress over 20 years, foreseeing a potential yearly revenue increase of up to $1.8 million.

This agreement aligns with Empress Royalty’s strategy of investing in producing precious metal mines to ensure substantial returns for its shareholders. The Galaxy mine’s expansion, facilitated by this investment, will contribute to Empress’ long-term revenue growth.

Empress and Golconda expect to complete due diligence and finalize the transaction in early 2024.

After trending down 35% over the past 12 months to a recent low at C$0.25 per share, at C$0.30 per share on Friday, it was up 3.5% for the day. It recently touched a high at C$0.44 per share. Empress has a market capitalization of C$35.5 million.

At Apollo, the team recorded impressive intercepts, including 130.45 metres at 2.17 grams gold-equivalent per tonne from a depth of 119.9 meters and 98.75 meters at 2.71 grams gold-equivalent from 132.35 metres, the company said in a press release.

These results stem from a short-hole drill program designed to infill the shallowest part of the system, providing data for block modelling and enhancing mineralization understanding.

Collective says the team has extended the dimensions of the Apollo system’s high-grade brecciated porphyry zone to 560 metres, previously measured at 520 metres, indicating a more extensive mineralized footprint. The company believes the system continues to offer expansion potential to the west, north, and at depth.

Collective also on Nov. 7 reported the discovery at Apollo of high-grade tungsten mineralization in its shallow portion. This tungsten, contained within the mineral scheelite, varies between 0.06% and 0.59%, averaging 0.25%.

This finding has increased the weighted average gold-equivalent grade of the drilled holes in the tungsten-rich area by 28%, to 3.67 grams gold equivalent from 2.87 grams per tonne. Given tungsten’s status as a critical global mineral, the company said this enhancement significantly boosts the project’s economic prospects.

About 3 km northeast of Apollo, the Trap target shows promising mineralization and geochemical characteristics similar to the Apollo system, Collective said.

Spanning about 2 km by 2 km, Trap notably exceeds Apollo in size. The ongoing drilling program at Trap focuses on building on the 2022 discovery hole TRC-1, which revealed significant gold-silver-copper mineralization over 102.2 metres of gold-silver-copper mineralization averaging 1.53 grams gold-equivalent per tonne.

With four rigs operational, Collective continues its 42,000-meter drilling campaign for 2023.

Upcoming results include directional drill holes at Apollo and initial findings from the Marmato Extension target, representing an additional exploration focus for Collective, alongside the drilling activities at Apollo, Plutus, and the newly started Trap drilling.

At C$4.11, Collective shares closed down 3.3% on Wednesday, having traded at C$1.90 and C$7.05 over the past 12 months. It has a market capitalization of C$249 million.

A dispute between Taranis Resources (TSXV: TRO), the British Columbia government and First Nations groups over the Thor project is brewing over deep drilling exploration permit delays.

On October 16, Taranis escalated the battle to the BC Supreme Court, seeking to bypass what it says are excessive delays in the permitting process. At issue is Taranis’ complaint against the BC Ministry of Energy, Mines and Low Carbon Innovation (AMLI).

The ministry “is unwilling to do its legal duty here because of First Nation pressure,” Taranis president and CEO John Gardiner told The Northern Miner in an interview. “It is regrettable that we have to apply to Court to have our rights respected,” Gardiner said, adding Taranis had been waiting more than 14 months for the notice of work permit for the project in the Kootenay mountains to be processed. He says the usual turnaround time for a notice of work permit is around 30 business days.

“We have tried everything else, including letters to Minister Josie Osbourne and Premier David Eby, and we hope the government is asking itself what message this sends to international investors,” Gardiner said.

However, yaqan nuʔkiy, also known as the Lower Kootenay Band, and the Ktunaxa Nation Council (KNC) said in a joint statement on Nov. 2 that Taranis was trying to “cut off [their] voice.” “No is a valid outcome of consultation,” said the groups in their statement.

The Ktunaxa’s view is that as traditional landholders, their consent is paramount, as underscored by the United Nations Declaration on the Rights of Indigenous Peoples and Section 35 of the Canadian Constitution.

Who has the ultimate say?

The belief that First Nations groups should have veto power over land use in BC has not been legally established but is affecting the climate of exploration operations in the province, Gardiner argues.

“The government has taken the position that First Nations are the rightful owners of the land,” Gardiner said, suggesting a departure from legal precedent that the Crown holds rights over the vast majority of BC’s land. This contention point is generating significant anxiety within the mining community.

Taranis argues that while considering Indigenous rights is part of the Crown’s duty to consult, the Supreme Court of Canada has repeatedly said that First Nations do not have a veto.

“So, the government has to follow the law here,” he said.

The exploration permit application relates to Taranis’s Thor project south of Revelstoke. The project has been the subject of prior exploration for 16 years, including more than 250 drill holes.

Taranis has been actively prospecting and undertaking permitted shallow drilling activities, with a Nov. 6 press release reporting grab samples grading as high as 14.55 grams gold and 1,705 grams silver per tonne. Still, the problem arose with its application last year to undertake deep-hole drilling to test its theory that an as-yet undiscovered porphyry intrusion underpins the epithermal Thor mineralization at surface.

Robin Younger, a lawyer at Calgary-based McMillan LLP, said the notion that First Nations hold ownership over the lands in question isn’t supported in law. “The contention, therefore, resides not in the letter of the law, but in its interpretation and the actions that stem from such readings,” he told The Northern Miner.

As BC grapples with these complexities, the fate of junior miners like Taranis hangs in the balance, Gardiner argues. He suggests the province’s permitting process appears to have been ensnared by a broader debate over Indigenous rights and environmental protection projects.

He specifically refers to the creation of the Incomappleux Park and Incomappleux Nature Conservancy bordering Thor, and potentially clouding the future operation’s permitting prospects. Gardiner alleges these parks were rushed through in record time during covid-years, with little to no industry or private landholder consultation.

Taranis criticizes these initiatives for lacking industry or private landholder consultation, suggesting a governmental preference for conservation partnerships over mining interests.

A spokesperson for EMLI said the ministry could not comment on a matter before the courts.

First Nations concern

The First Nations’ concerns mainly centre around the potential impact on the region’s ecological and archaeological values, with implications for species at risk, water quality, and Indigenous rights.

In January, yaqan nuʔkiy and the KNC first learned of Taranis’s intention, prompting immediate letters of opposition citing the need for a Ktunaxa-led vision and plan for the land’s future. The BC government’s subsequent commitment to further consultation did little to stall Taranis’s legal action.

For their part, the yaqan nuʔkiy and Ktunaxa leaders stated their nations are open to mining but on terms that respect their heritage and ecological concerns. They highlight a long-term perspective over short-term economic gains, seeking projects that can coexist with their vision for the land’s future health.

As Taranis awaits its day in court, the situation underscores a broader national conversation about the rights of Indigenous peoples, the authority of traditional landholders, and the future of resource development within the framework of Canadian law and Indigenous reconciliation.

Another recent BC Supreme Court decision has a bearing. In September, the court ruled that the province must consult with Indigenous groups before granting mineral claims, upholding the Crown’s duty to consult.

The province’s miners welcomed the ruling, seeing it as an opportunity to modernize the Mineral Tenure Act, ensuring the mineral claim staking process remains competitive, efficient, and respectful of Indigenous peoples’ rights.

The executive, who just concluded a three-year stint serving as the chair of the World Gold Council (WGC), argues that traditional financing models have often been restrictive, especially for projects in their early stages, making it difficult for them to advance to production.

“The nice part about the streaming model is we can adapt it and make it fit so that it makes the most sense in terms of getting that mine built,” Smallwood said during The Northern Miner’s recent Canadian Mining Symposium in London. “That’s the advantage of the streaming model: we can actually adjust our terms to ensure that the project gets built and we can bring in partners.”

The metals streaming financing model, which began in 2004, provides upfront capital to mining companies, enabling them to initiate and sustain operations. In return, the financiers secure the right to buy a portion of the future production at a predetermined price.

This arrangement ensures that mining projects have the necessary funds to navigate through exploration, feasibility studies and eventually reach production. That can be particularly helpful for rare minerals critical to technological advancement that investors may overlook.

Wheaton Precious’ forerunner, Wheaton River Minerals, developed the model to first focus on exchanging upfront capital for silver by-products from mainly gold projects. Later it expanded the scope to include by-product gold streams, mainly from copper developments. In recent years, however, it has expanded the portfolio further by taking critical mineral streams such as a portion of cobalt by-product from Vale’s (NYSE: VALE) Voisey’s Bay nickel redevelopment in northeastern Canada. The portfolio has also expanded to capture platinum-group metals streams.

Critical minerals include rare earth elements, lithium, cobalt, and others, considered indispensable to modern technology, clean energy solutions, and national security. The minerals are central to manufacturing high-tech devices, renewable energy technologies, electric vehicles, and various defence applications.

Wheaton Precious’ proactive approach can mitigate supply risks, foster innovation and propel sustainable development initiatives into the future, Smallwood suggested.

The company, with a market capitalization at Thursday’s market close of $26.9 billion, primarily targets projects with bankable feasibility studies and permits. However, they’ve also introduced a funding model tailored for firms in the ‘orphan period’ of the Lassonde Curve. This phase, bridging the initial market enthusiasm post-discovery and the onset of building, sees proven discoveries needing substantial investments for economic and environmental evaluations and construction.

“On the development side, we’ve developed the early deposit model, which really works for a lot of these earlier stage projects,” Smallwood said. “We will supply some capital in advance of permits, in advance of feasibility.”.

While the corporate development team continues to scour the globe for suitable deals, Wheaton Precious comes off an intense 30 months which saw it deploy around US$2 billion into new investments. Smallwood expects these investments to drive a production increase over the next five years, from 600,000-660,000 oz. gold-equivalent to 810,000 oz., and average about 850,000 oz. gold-equivalent over the next decade. Its share price increased by more than 40% over the last 12 months to close at $59.43 on Thursday.

Digital gold

The conversation ranged from the role of blockchain in gold trading to the prospects of a gold-backed digital currency. He shared insights on how blockchain technology can ensure transparency and traceability in gold trading, instilling confidence among investors and stakeholders.

“Tell me there’s not a market for gold that you can trust,” said Smallwood.

Smallwood also noted that initiatives like the Gold Bar Integrity program led by the WGC are making strides. At the the council’ss September annual general meeting, members representing over 60% of global gold production committed to integrating these advancements into their systems.

ESG concerns

The session also highlighted the myriad geopolitical challenges and environmental, social, and governance (ESG) considerations involved in mining investments. Smallwood discussed Wheaton Precious’ strategic approach towards identifying global opportunities.

He stressed that the company actively seeks projects worldwide while exercising caution and due diligence in evaluating the political climate and ethical considerations in different jurisdictions. Wheaton Precious takes a particularly conservative stance, ensuring their investments align with stringent ESG criteria.

For instance, the company deems certain regions, such as Russia and China, non-investable due to associated risks while exploring others, like Australia and Africa, with a discerning eye.

“The conversion program has defined several wide, high-grade mineralized zones in distinct sectors outside the current reserve that we expect to underpin further future conversion of resources to reserves,” president and CEO Ron Hochstein said in a news release.

The continued exploration success bodes well for adding to and converting current resources, Canaccord Genuity Capital Markets mining analyst Jeremy Hoy said in a note to clients Thursday.

The company has been building substantial exploration momentum with its near-mine targets at FDN recently, culminating in a positive reserve and resource update in February. In September, Lundin expanded its drill program for the second time this year, to 50,000 metres.

As of February, the FDN mine boasts resources of 32.2 million tonnes grading 8.21 grams gold per tonne for 8.5 million oz. gold, and reserves of 17.98 million tonnes grading 8.68 grams gold for 5.02 million oz. of metal. FDN is considered among the highest-grade operating gold mines in the world.

The company’s near-mine program continues to explore individual sectors along trend of the FDN deposit and within extensions of its major controlling structures. The company has drilled 26,361 metres out of a planned 30,000 metres here this year across 46 holes as of the end of October, both underground and from surface.

Drilling earlier this year discovered a new exploration target, Bonza Sur, which has been a primary focus over the last few months. The results continue to define a new epithermal system only 1 km south of the FDN deposit, and the company believes the same volcanic sequence hosts mineralization.

The epithermal system is thought to extend to surface and stretches 850 metres, striking north-south, for a minimum of 500 metres depth in the central area.

Highlights from the near-mine results include 7.44 grams gold per tonne over 8.8 metres from 620.2 metres depth, including 34.68 grams gold per tonne over 1.8 metres in hole BLP-2023-042; and 5.87 grams gold over 11.9 metres from 168.4 metres depth, including 14.39 grams gold over 4 metres.

In the coming months, Bonza Sur drilling will focus on better understanding the zone with tighter spacing and testing the envelope at depth and along strike. Two rigs continue to work on the target.

Meanwhile, an underground conversion drill program at FDN has concluded. It was focused on inferred resources within the FDN deposit, completing 11,233 metres of underground drilling across 79 holes. The results will feed into the expected updated reserve and resource estimate early in 2024.

Highlights from the underground conversion program include an intersection of 48.5 metres grading 6.92 grams gold per tonne from 50.6 metres depth, including 8.7 metres grading 22.88 grams gold in hole FDN-C23-062; and 37.9 metres grading 6.49 grams gold 123.3 metres depth, including 6.6 metres at 12.59 grams gold per tonne in hole FDN-C23-048.

Lundin Gold reported its production for the quarter ending Sept. 30 early in October, mainly outlining consistent output across the portfolio.

Gold production came in at 112,711 oz., compared with 121,635 oz. in the same quarter of 2022. Contributing to the slight decrease in production was a drop in the average gold recovery rate, from 90.3% to 86.5%. However, this was partially offset by an increase in the average throughput.

As a result, gold output from FDN is still expected to meet Lundin’s 2023 guidance of 450,000 to 485,000 oz. gold.

Canaccord’s Hoy has a ‘buy’ rating on the stock, which last traded at C$16.84, with the analyst maintaining a price target of C$20.25. Lundin Gold has a market capitalization of C$4 billion ($2.9bn).

The panel, moderated by industry commentator Chris Hinde, explored topics ranging from the challenges of implementing innovation in existing assets, the risk appetites of industry stakeholders, financing innovation, and the complexities of metallurgy.

Featuring panellists Stephen Mullowney, CEO of TRX Gold; John McConnell, CEO of Victoria Gold; Sean Roosen, chair and CEO of Osisko Development; and Jean-Philippe Mai, president and CEO of Dundee Sustainable Technologies, the discussion underlined the critical role of environmentally sound and viable innovations, as well as the intricate balance of risk and reward in long-term mining projects.

But Giustra doesn’t just champion the gold market. He offers a broader view of the global economy, drawing from extensive experience. He underscores the shift away from a U.S.-centric monetary system and points out the increasing importance of gold in our unpredictable global landscape. As countries like China and Russia stock up on gold, investors and policymakers cannot ignore Giustra’s insights and forecasts.

Beyond financial discussions, Giustra commits deeply to creating positive change. His philanthropic efforts range from poverty relief to refugee assistance. Always thinking outside the box, Giustra seeks innovative solutions to complex problems, driving real change in the process.

In a world grappling with stark wealth disparities, Giustra calls for balance. He voices concerns many share about the distribution of wealth and pushes for a more equitable world. By investing in the younger generation and highlighting their potential, he showcases his optimism for the future.

As the independent chair of Kinross Gold (TSX: K, NYSE: KGC), one of the world’s long-lived gold majors, her story recounts perseverance, vision, and a passion for geology and exploration, The Northern Miner’s Canadian Mining Symposium heard Friday in London. Instead of seeing it as a hurdle, she turned it into an opportunity to be heard.

“Back in 1985, around the beginning of my career, women were not allowed on the floor of the Vancouver Stock Exchange. So much has changed since then,” she told TNM’s Editor-in-Chief, Alisha Hiyate, during a keynote fire-side chat.

McLeod-Seltzer has faced her fair share of challenges at Kinross, from navigating the complexities of the covis-19 pandemic to geopolitical crises like Russia’s invasion of Ukraine. The latter prompted Kinross to pull out of Russia amid international sanctions, costing it about 350,000 oz. of gold production in 2022.

Yet, under her leadership, the company has weathered these storms and found growth opportunities, as seen in the C$1.8 billion ($1.3bn) acquisition of Great Bear Gold’s Dixie project in Ontario.

Early ESG passion

Long before ESG (environmental, social, and governance) became a buzzword in corporate boardrooms, McLeod-Seltzer championed the cause.

With Bear Creek Mining, which she co-founded and chairs, McLeod-Seltzer discussed how the company contributed to the local communities. The company, which struck silver in the southern Peruvian Andes, worked with local women to improve the quality of the alpaca wool they produced and helped them build relationships directly with buyers — cutting out the middlemen and more than tripling their revenues. Because of the company’s social program, local health and sanitation outcomes improved.

She said this clearly demonstrated that mining was not just about extracting resources but also about adding tangible social value.

McLeod-Seltzer believes in the noticeable impact ESG can have on the ground. “It’s an exemplification of how the mining industry, often seen through skeptical eyes, can genuinely transform lives,” she said.

Today, she is a staunch advocate for diversity in gender, race and skill sets. Her straightforward belief is that a diverse boardroom leads to diverse ideas essential for growth and innovation.

“I’ve been a bit of a trailblazer, but I feel like I’m not alone on the trail. There are so many talented women in the industry today,” she notes.

Value via the drill bit

She believes the industry’s natural alchemy of value creation lies in the drill bit.

Drawing from her career successes, she emphasized that the significant leaps in asset valuation come from discovery, referencing instances where mere months of drilling led to exponential share value growth.

Such instances underline her conviction that while subsequent stages, like metallurgical studies and technical evaluations, certainly add worth, they primarily reinforce and underpin the value initially unearthed by the explorer’s drill bit. Her assertion, backed by hands-on experience, underscores the primacy of exploration in mining.

As someone with a finger on the pulse of the industry, McLeod-Seltzer is optimistic about gold’s future. Drawing parallels with the economic conditions of the 1970s, she believes that the precious metal remains an attractive haven, especially amidst current global economic uncertainties.

“I think there’s potential for something to break,” she said. “And when we see that happen, that’s where gold shines.”

“I think we’ve got a significant discovery here. It’s early stage, but I think it will develop into a mine of what size, time will tell,” company founder and prospector financier Simon Ridgway tells The Northern Miner in an interview.

At the Mila prospect, the Volcanic team discovered significant concentrations of bonanza-grade and visible gold within a 250 x 570-metre zone, notably in quartz veins. Recent rock chip sampling across varied terrains returned continual 2 metre chip sample averages of 42 grams gold per tonne over 34 metres and 54 grams gold over 24 metres.

This high-grade gold in the quartz veins and adjacent areas suggests extensive gold mineralization zones.

The location boasts a gold-silver deposit with profound potential, according to Ridgway. The results indicate that high-grade gold mineralization appears to be focused within two north-south structures, roughly 200 metres apart, with each spanning at least 250 metres in length.

Current assessments suggest that one or possibly both structures house several quartz veins over a breadth of 25 to 50 metres.

To uncover the genuine structure, dimensions, and quality of these mineralized veins and adjacent areas, trenching and drilling work will soon start to follow up on the early September reports of exceptional gold grades at Mila. The initial samples, in several instances, exceeded 1 oz. gold per tonne, prompting comprehensive 2 metre-spaced chip sampling to verify the extent and distribution of the gold and prioritize future exploration activities.

Ridgway, who has worked in Guatemala since 1998 and has several successful mining discoveries to his credit, suggested the possibility of a sizeable orogenic system being present that promises depth and significant discovery potential.

Yet, obtaining mining concessions in Guatemala is no cakewalk. Despite rigorous approval processes and a waiting period stretching up to a year, Ridgway remains optimistic.

“There’s a silver lining,” he said, hinting at the potential restart of Pan American Silver’s (TSX: PAAS; NYSE: PAAS) Escobal silver mine “hopefully before year-end,” and possibly signalling a positive shift in Guatemala’s mining landscape. Operations are on hold awaiting an ILO 169 (Indigenous) consultation, with no set timeline for its completion or Escobal’s operational restart, according to Pan American.

Beyond the geology and potential of the Mila prospect, in Ridgway’s view, the larger picture focuses on Guatemala’s socio-economic scenario. With a staggering unemployment rate and an economy desperately needing a shot in the arm, newly elected President Bernardo Arevalonew’s administration emphasizes job creation.

Here, mining emerges as a beacon of hope. Ridgway observed that reopening mines could be a pivotal move, “creating employment and wealth in the country.”

As the next steps, Volcanic is gearing up for drilling at the Mila prospect, with an initial plan spanning 1,000 to 3,000 meters to be announced soon, according to Ridgway.

Shares in Volcanic jumped 30% during intra-day trading in Toronto before settling at C20.5¢ apiece by the closing bell. It has touched C12¢ and C25¢ per share over the past 12 months. Volcanic has a market capitalization of C$9.3 million ($6.8m).