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Mineral Exploration in BC: Opportunities and Challenges

Mineral Exploration in BC: Opportunities and Challenges Dan M. Jepsen, RPF President & CEO Association for Mineral Exploration BC Canadian Diamond Drilling Association Thursday, May 29, 2008.

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Mineral Exploration in BC: Opportunities and Challenges

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  1. Mineral Exploration in BC: Opportunities and Challenges Dan M. Jepsen, RPFPresident & CEOAssociation for Mineral Exploration BC Canadian Diamond Drilling Association Thursday, May 29, 2008

  2. About AME BC“AME BC promotes a healthy, sustainable and environmentally sound mineral exploration and mining sector in British Columbia for its members.” Established in 1912 in Vancouver, BC 4,660 individual & 340 corporate members Hosts Mineral Exploration Roundup – over 6,700 registrants in 2008

  3. BC Mineral Exploration and Mining Highlights • 28,000 employed in BC • $101,900/year wages and benefits • $7 billion+ industry • 25 major projects under review

  4. Mineral Exploration and Mining Highlights • BC companies raise over 50% of global mineral exploration financing • Over 850 companies call Vancouver home • Over 700 BC consultants and suppliers • Mineral ores and products account for 50% of Vancouver port traffic

  5. BC’s Competitive Advantage • Proven mineral potential - great geology • Expertise in geosciences, exploration & mine development • Rail, road & port infrastructure • Skilled workforce • Low cost power • Competitive tax structure and incentives

  6. Provincial government support • Mineral Titles Online – state of the art mineral tenure acquisition • Publicly available geoscience data • Trade Missions

  7. Exploration Expenditures in BC Data Courtesy: BC Ministry of Energy, Mines and Petroleum Resources

  8. Mineral Exploration Drilling in BC Data: BC Ministry of Energy, Mines and Petroleum Resources, Natural Resources Canada

  9. BC's Percentage of Canadian Exploration Expenditures Data Courtesy: Natural Resources Canada

  10. Mineral Tenure Acquisition in BC Data Courtesy: BC Ministry of Energy, Mines and Petroleum Resources

  11. Commodity Prices (US$) 2001 2008* % increase Gold (oz.) $263 $899 242% Silver (oz.) $4.07 $17.47 329% Copper (lb.) $0.75 $3.74 399% Molybdenum (lb.) $1.75 $33.12 1793% Zinc (lb.) $0.42 $0.94 124% *Prices as of May 28, 2008

  12. Fraser Institute Survey: Policy Potential Index 2007/08 (19/68) 2005/06 (23/64) 2006/07 (30/65) 2004/05 (44/64) Honduras Zimbabwe Ecuador Panama Bolivia India Indonesia Mongolia Philippines Venezuela Mali Kazakhstan Colombia Pap./N.Guinea Nunavut China Wisconsin DRC (Congo) South Africa Tanzania South Dakota Turkey Russia Washington New Zealand Argentina California Colorado Montana Brazil Burkina Faso NWT Idaho Alaska Zambia Namibia Spain Minnesota Queensland Victoria Peru New SthWales NewMexico West. Australia Mexico Ghana Nfld./Labrador Nthn. Territory Tasmania Brit. Columbia Ontario Nova Scotia Yukon South Australia Arizona New Brunswick Saskatchewan Botswana Sweden Ireland Wyoming Utah Chile Manitoba Alberta Finland Nevada Quebec 2003/04 (45/53) 2002/03 (44/47) 2001/02 (45/45)

  13. Challenges • Bill 30 – Resource Roads Act • Bill 43 – Compensation • Uranium • Aboriginal Engagement • Land Use Tables • Carbon Tax/Climate Change • Costs • Labour Shortage • Landowner Notice • Major Projects Management Office • Mine Permitting • Mineral Reserves • Water Monitoring Streamlining • Financing/Investor Certainty

  14. Top “5” Issues • Mine Permitting - Major Projects Management Office • Mineral Reserves/Geoscience • Aboriginal and Community Engagement: Social Licence • Land Access and Mineral Tenure • Labour Shortage/Education and Training • Infrastructure • Climate Change Initiative

  15. Mine Permitting • Number of projects under consideration (both EA and provincial mine permitting): • 2001: 1 • 2008: 25 • Major projects management office to streamline environmental review process Tulsequah

  16. Hit 25 year low in 2004 in Canada; rebounded slightly in 2005/06 • Current discoveries unlikely to meet global demand for metals (esp. in China, India) Mineral Reserves Canada (1980=100) – adapted from NRCan

  17. Geoscience • BC government has committed $37 million toward • Geoscience BC since 2005

  18. Geoscience • BC Geological Survey • Geological Survey of Canada • Federal commitments • for data to lead to • new discoveries • (Targeted Geoscience Initiative) Treaty Glacier

  19. Aboriginal and Community Benefits/ • Social Licence • Partnerships are key • Engagement and cross-cultural understanding critical • Provincial resource revenue sharing model needed • Government commitment to consult ($30M) welcome

  20. AME BC Initiatives • Cultural Awareness Workshops • ACE Guidebook • Stepping Stone newsletter • 10 Principles for Sustainable Relationships between the Mineral Sector & Indigenous Peoples • Community Visits Kutcho

  21. Land Access and Mineral Tenure • Access to land a key issue throughout BC – 2-Zone Model • Land use plans continue to erode land base • First Nations land title issues – Duty to Consult and Accommodate • Mineral Tenure Act amendments threat to certainty; working with government to best approach this

  22. Labour Shortage • Up to 100,000 workers needed over the next 10 years throughout Canada • 40% of personnel across Canada plan to retire within 10 years • Majority of workers in BC over 45 years old (52%) • Average planned retirement age: 60 • 85% male; 4% Aboriginal • 7,500 workers in next 5 years

  23. Infrastructure • Working with industry and governments on Northwest Transmission Line • Kemess Power Line • Worked with Water Highway BC to secure Hydrometric funding

  24. Health and Safety Initiatives • Safety Guidelines for Mineral Exploration in Western Canada • Annual Report in conjunction with PDAC • Health and Safety Awards • Exploration Field Safety Awareness Workshops • Safety stickers and cards

  25. Summary • Commodity prices, improved regulatory environment have made BC a preferred destination for mineral exploration and mining • Key challenges remain in mineral reserves; geoscience; Aboriginal and community benefits; land access; and labour shortage • Opportunities exist to address these challenges so that all British Columbians can benefit

  26. Thank you! For additional information related to AME BC’s activities and to inquire about corporate membership contact: Association for Mineral Exploration BC Suite 800 – 889 West Pender Street Vancouver, BC V6C 3B2 Tel: (604) 689-5271 Fax: (604) 681-2363 Web: www.amebc.ca

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