Canadian Innovation Canadian Innovation

in Mining Explorationin Mining Exploration

Tes HailePresentation to SIMFE 2017 SudanAdapted fromLeo Fox, PresidentPHOENIX Geophysics Ltd.Presentation at PDAC 2012

TorontoToronto

OutlineOutline

�� INVENTION vs. INNOVATION INVENTION vs. INNOVATION

�� Why Canada?Why Canada?

�� Canadian mining and exploration expertise:Canadian mining and exploration expertise:�� Canadian mining and exploration expertise:Canadian mining and exploration expertise:�� long history, broad & deep long history, broad & deep

�� Why Toronto?Why Toronto?

�� a few examples of innovationsa few examples of innovations

�� The future… The future…

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Invention vs. Innovation Invention vs. Innovation

�� Invention: Invention: creationcreation of the idea or methodof the idea or method

�� Innovation: Innovation: introduction introduction of more effective of more effective products, processes, services, technologies, or products, processes, services, technologies, or products, processes, services, technologies, or products, processes, services, technologies, or ideas that are ideas that are accepted and used accepted and used by companies, by companies, markets, governments, and societymarkets, governments, and society

(wikipedia)(wikipedia)

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Innovation Innovation –– Catalyst for growthCatalyst for growth

Invention must be applied to generate returns!Invention must be applied to generate returns!

�� improvements in efficiency, productivity, improvements in efficiency, productivity,

quality, competitiveness, market share, etc.quality, competitiveness, market share, etc.

�� (wikipedia)(wikipedia)

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MooreMoore’’s Law: s Law: wellwell--known exampleknown example

(Law of Accelerating Returns; competitive (Law of Accelerating Returns; competitive

advantage of player further advantage of player further ““up the curveup the curve””))

Why Canada? Why Canada?

�� Large territory, all types of mineralsLarge territory, all types of minerals

�� Base and precious metals, uranium, diamonds, Base and precious metals, uranium, diamonds,

metallurgical coal, mined oil sands and industrial metallurgical coal, mined oil sands and industrial

mineralsmineralsmineralsminerals

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Diavik Diamond Mine, NWT5400 km

Why Canada? $$$ & jobsWhy Canada? $$$ & jobs

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Why Canada? $$ & jobsWhy Canada? $$ & jobs

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Why Canada? PostWhy Canada? Post--1945 1945

Background Background

�� EverEver--increasing demand for metals, oil & gasincreasing demand for metals, oil & gas

�� Rapid commercialization of WW II electronicsRapid commercialization of WW II electronics

�� New geophysical instrumentation, effective in Canadian New geophysical instrumentation, effective in Canadian Shield (resistive rocks, shallow deposits, little cover) Shield (resistive rocks, shallow deposits, little cover) Shield (resistive rocks, shallow deposits, little cover) Shield (resistive rocks, shallow deposits, little cover)

�� Wave of immigrants, many with relevant advanced Wave of immigrants, many with relevant advanced education/experience in physicseducation/experience in physics

�� Effective coEffective co--operation between governments, major operation between governments, major mining companies, universities, geophysical companies, mining companies, universities, geophysical companies, financing companies; proximity to Shieldfinancing companies; proximity to Shield; especially in ; especially in TorontoToronto

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Why Canada? Why Canada? Critical mass of big mining companiesCritical mass of big mining companies

�� ““keystone specieskeystone species””:~100 major producing mining :~100 major producing mining companies; companies; ““ecosystemecosystem”” : 1000s of junior mining, : 1000s of junior mining, exploration, and service companiesexploration, and service companies

�� Canadian innovations exported by 100s of companiesCanadian innovations exported by 100s of companies

�� Vancouver, Toronto: major centresVancouver, Toronto: major centres�� Vancouver, Toronto: major centresVancouver, Toronto: major centres

�� >600,000 direct + indirect jobs; skilled workforce >600,000 direct + indirect jobs; skilled workforce including many immigrantsincluding many immigrants

�� 2010 est.: >8% of Canadian GDP from direct + indirect 2010 est.: >8% of Canadian GDP from direct + indirect ““Mining and Oil & Gas extractionMining and Oil & Gas extraction””

�� >21% of exports (>$80 Billion) (includes oil and gas) >21% of exports (>$80 Billion) (includes oil and gas)

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Why Canada? (contWhy Canada? (cont’’d)d)

�� VERY energetic junior mining exploration sectorVERY energetic junior mining exploration sector�� ““small companies find, big companies minesmall companies find, big companies mine””

�� Strong financial incentives at all levels Strong financial incentives at all levels (personal, corporate, town/city, provincial, national)(personal, corporate, town/city, provincial, national)

�� Continuing major discoveries / producers, ex. :Continuing major discoveries / producers, ex. :�� Continuing major discoveries / producers, ex. :Continuing major discoveries / producers, ex. :�� Texas Gulf Sulphur (Timmins, ON, 1964)Texas Gulf Sulphur (Timmins, ON, 1964)

�� Hemlo Gold (early 1980s)Hemlo Gold (early 1980s)

�� Diamonds (1990s)Diamonds (1990s)

�� VoiseyVoisey’’s Bay Nickel (1990s)s Bay Nickel (1990s)

�� Athabasca Tar Sands (bitumen mining) 1980sAthabasca Tar Sands (bitumen mining) 1980s

�� and many others…and many others…

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Expertise: Broad and DeepExpertise: Broad and Deep

�� Prospecting, ExplorationProspecting, Exploration

�� Government mapping programsGovernment mapping programs

�� Geology, geophysics, geochemistry, geoGeology, geophysics, geochemistry, geo--**

�� Training: universities, colleges, tech schools Training: universities, colleges, tech schools �� Training: universities, colleges, tech schools Training: universities, colleges, tech schools

�� Drilling, tunnelling, shafts, etc. Drilling, tunnelling, shafts, etc.

�� Transportation, communicationTransportation, communication

�� Instrumentation, software, servicesInstrumentation, software, services

�� ….and more….see it all at PDAC !….and more….see it all at PDAC !

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Innovation: Technical and NonInnovation: Technical and Non--

TechnicalTechnical�� nonnon--technical innovations can be as important technical innovations can be as important

as technical innovationsas technical innovations

�� Attitude is critical: the Attitude is critical: the ““culture of innovationculture of innovation””, ,

““culture of problem solvingculture of problem solving””, and a good , and a good ““culture of problem solvingculture of problem solving””, and a good , and a good

understanding of how it all works togetherunderstanding of how it all works together

�� Innovations are hierarchical; a single good topInnovations are hierarchical; a single good top--

level innovation can catalyze many others and level innovation can catalyze many others and

add $Billions to the economy add $Billions to the economy

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OneOne Technical Innovation: Technical Innovation: diamond indicator minerals +dispersion trains diamond indicator minerals +dispersion trains

+ airborne mag / EM =>$Billions+ airborne mag / EM =>$Billions

(Almaden Minerals)

Technical InnovationsTechnical Innovations

�� Thousands of technical innovations in instrumentation, Thousands of technical innovations in instrumentation,

geology, analysis, software, drilling, etc., etc.geology, analysis, software, drilling, etc., etc.

�� Like indicator minerals, just one successful innovation Like indicator minerals, just one successful innovation

can generate $Billionscan generate $Billionscan generate $Billionscan generate $Billions

�� Too many to mentionToo many to mention

�� See the Trade Show !See the Trade Show !

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Transportation / InfrastructureTransportation / Infrastructure

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NonNon--technical innovations: technical innovations: Government Mapping ServicesGovernment Mapping Services

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NonNon--technical: technical: Industry AssociationIndustry Association

�� Canadian Association of Canadian Association of

Mining Equipment and Mining Equipment and

Services for ExportServices for Export

�� Founded in 1981Founded in 1981

Strong growth after 1993Strong growth after 1993�� Strong growth after 1993Strong growth after 1993

�� 300+ corporate members300+ corporate members

� Strong voice for industry

� Coordination with

government, other

associations

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NonNon--technical technical

�� Financing and taxation modelsFinancing and taxation models�� No capital gains tax before 1972; no gambling or casinos; risk No capital gains tax before 1972; no gambling or casinos; risk

capital went to junior mining exploration capital went to junior mining exploration �� Since 1972: capitalSince 1972: capital--gains tax…but….gains tax…but….

�� FlowFlow--through sharesthrough shares

�� Government R&D supportGovernment R&D support�� Government R&D supportGovernment R&D support�� MiningMining--industry structureindustry structure

�� ~100 major mining companies, ~1200 junior mining ~100 major mining companies, ~1200 junior mining companies, 1000s of service companiescompanies, 1000s of service companies

�� Stable environment Stable environment –– safe investmentssafe investments�� Strong regulation of junior mining companiesStrong regulation of junior mining companies

�� reliability of reported exploration resultsreliability of reported exploration results

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Why Toronto?Why Toronto?

�� A critical mass of favourable factors:A critical mass of favourable factors:

�� Government (provincial capital since 1793)Government (provincial capital since 1793)

�� Many major and junior mining companiesMany major and junior mining companies

�� Universities (U of Toronto, York U, Ryerson U)Universities (U of Toronto, York U, Ryerson U)

�� Many mining geophysical companiesMany mining geophysical companies�� Many mining geophysical companiesMany mining geophysical companies

�� Many financing companies (Toronto = major financial center)Many financing companies (Toronto = major financial center)

�� Proximity to Canadian ShieldProximity to Canadian Shield

�� Major city with large, skilled workforce, good communications, etc.Major city with large, skilled workforce, good communications, etc.

�� Major transportation hub (air, ocean, rail, highway)Major transportation hub (air, ocean, rail, highway)

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PDAC: a key highPDAC: a key high--level nonlevel non--

technical innovationtechnical innovation�� PDAC (est.1932) started by combining grassPDAC (est.1932) started by combining grass--roots roots

exploration with financing sources in a single venue exploration with financing sources in a single venue

�� Common vision among the key players has resulted Common vision among the key players has resulted in rapid growth since the midin rapid growth since the mid--1990s1990s

�� PDAC is now the worldPDAC is now the world’’s largest exhibition and s largest exhibition and conference for mining exploration & financeconference for mining exploration & finance

�� Innovation in current form: combines worldwide Innovation in current form: combines worldwide technical and nontechnical and non--technical players in one venuetechnical players in one venue

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�� Canada Canada inventsinvents new processes, products, new processes, products, services, relationships, business models, etc.services, relationships, business models, etc.

�� Canada Canada innovatesinnovates: adopts and adapts : adopts and adapts inventions and innovations made in Canada inventions and innovations made in Canada and elsewhereand elsewherestrong strong ““culture of innovationculture of innovation”” and and ““culture of culture of

SUMMARYSUMMARY

�� strong strong ““culture of innovationculture of innovation”” and and ““culture of culture of problem solvingproblem solving””

�� Long history Long history –– ““Law of Accelerating ReturnsLaw of Accelerating Returns””�� Broad and deep expertiseBroad and deep expertise�� MidMid--1990s: worldwide demand increases; 1990s: worldwide demand increases;

sustained expansion begins sustained expansion begins

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FUTUREFUTURE

�� Increasingly global viewpointIncreasingly global viewpoint

�� Accelerating rate of changeAccelerating rate of change

�� Momentum: Canada will stay Momentum: Canada will stay ““far up the curvefar up the curve””

�� Value to GDP ($) will continue to increase Value to GDP ($) will continue to increase �� Value to GDP ($) will continue to increase Value to GDP ($) will continue to increase

�� Increasingly effective cooperation and coordinationIncreasingly effective cooperation and coordination

between all players: governments, producers,between all players: governments, producers,

universities, exploration and service companies, universities, exploration and service companies, individualsindividuals

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Deep, Far and WideDeep, Far and Wide

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McPharMcPhar

History of Phoenix MT since1980 History of Phoenix MT since1980 1980

1987

1997MT-16

V5-16

SSMT (System 2000)

Eighth Generation: V8 Receiver

1975 –

�� Innovation TDEM SensorsInnovation TDEM Sensors

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