- NWT Exploration & Mining Prospects 2012 -
Presentation to NWT Chamber of Commerce AGM Yellowknife – April 3, 2012
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Discussion Items
• Industry update • Our challenges • Encouraging signs • How you can help
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Current NWT Mineral Production
CanTung (tungsten)
Snap Lake(diamonds)
Ekati(diamonds)
Meadowbank(gold)
Diavik(diamonds)
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Value of Mineral Production, 2011
NWT, Nunavut and Yukon Mining Production
$653 $682$779
$874
$1,667
$2,112
$1,790
$1,638
$1,831
$2,123
$1,507
$2,045$2,144
$349 $385$321
$272
$35 $35 $4 $32 $35 $13 $0
$317$414
$0
$500
$1,000
$1,500
$2,000
$2,500
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(p)
$C M
illio
ns
NWT
Nunavut
Yukon
Natural Resources Canada – March 2012
• Diamonds are up by $40 million over last year, and tungsten is up by $55 million. • Benefits to date: 17,000+ person-years employment; $9+ billion northern business• Important that we take actions to help sustain and even grow this production.
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Future of NWT Mines
• Find ways to sustain our mines• Attract investment in new mines and exploration to sustain benefits
Mine lives - years1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030
Ekati
Diavik
Snap Lake
Cantung
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NWT: What’s “in the wings”
Howard’s Pass (YT)(base metals)
Prairie Creek (base metals, silver)
Gahcho Kue(diamonds)
Nechalacho(rare earths)
Ormsby (gold)
NICO(gold, cobalt, bismuth)
Pine Point (base metals)
Courageous(gold)
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6 New NWT Mining Opportunities
PROVISO: This data is taken from public information that represents best case scenarios. Actual project timing and opportunities are subject to market prices & conditions, regulatory approvals and timing, investor approval, etc.
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036
Prairie Creek
Gahcho Kue
Nechalacho
Tyhee
NICO
Pine Point
• NWT has 6 mining proposals advancing. • They are not slam dunks, but we are optimistic • Could help fill the void when diamond mines decline & close
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Total value of 6 proposed new NWT mines
• Capital investment – about $1.8 billion • Annual operating expenditures – about $700 million• Jobs at peak – about 1,400 • Total person years employment – more than 25,000• Total expenditures over life – more than $14 billion
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But, need for more exploration
Mining Project Name (Operator) Commodity Expected
ProductionExpected
JobsExpected Capital Costs
($C millions)
Yellowknife Gold Project (Tyhee) Gold 2014 238 $ 170
NICO (Fortune)
Gold, Copper, Cobalt, Bismuth 2013 150 $ 200
Thor Lake(Avalon Rare Metals) Rare Earth Metals 2014 200+ $ 228+313
Prairie Creek (Canadian Zinc) Silver, Zinc, Lead, Copper 2013-14 220 $ 60
Gahcho Kue(De Beers, Mtn. Province) Diamonds 2015 360 $650
Pine Point(Tamerlane) Zinc, Lead 2013 225 $ 135
TOTAL 1,400 jobs $ 1.8 billion
EKATI mine Diamonds 1,229 jobs
• If all 6 NWT projects become mines, the direct jobs will just equal jobs at the Ekati mine. Five years after Ekati, Diavik is slated to close.
• We need more exploration.
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Grassroots Exploration: building the future
Base metals, diamonds
DiamondsGold
Gold
Base metals, silver
Gold
Lithium
Copper
Copper, nickel, cobalt
Copper, gold
Nickel
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We must attract more exploration
NWT, Nunavut and Yukon Mineral Exploration
$0
$100
$200
$300
$400
$500
$600
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$C M
illio
ns
NWTNunavutYukon
NRCan March 2012
• Languishing NWT exploration investment (compare Yukon and NU). • Upside? We created this, therefore we can change this.
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The NWT Challenges
• Maturing industry – Ekati to close in 2019– Requires many new mines to replace world class Ekati and Diavik
• Languishing exploration • Regulatory complexity
– complex and outdated MVRMA; significant public concern sending small grassroots projects to EA
• Access to land – Protected Areas Strategy – $25m with no balancing Economic
Development strategy has helped conservation bias • Aboriginal consultation & participation
– consultation requirements not clear, Akaitcho Exploration Agreements, unsettled land claims
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Encouraging Signs
• 6 new mines proposed • Small upturn in exploration investment• Regulatory certainty – legislation being modernized
by Federal government • GNWT Priority – NWT Mineral Development Strategy
• Aboriginal support
– Akaitcho MOU, Tli Cho’s Kwe Beh Working Group – Pan Territorial Training Strategy
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How you can help
• You are all leaders who have influence • Get to know your mining neighbours
– Think and work creatively with them • Offer your support through:
– Chamber of Mines, Commerce, Construction Assoc.– Your land claim organizations – Government leaders and officials
• Strength in working together– We can create our own Opportunities
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Why it matters
Courtesy Diavik Diamond Mines Inc.
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