The Basics
An overview of the past, present, and future of gold mining in British Columbia covering both prospecting and mining. New technologies, enhanced expertise and operational efficiencies, point to making mining more economically viable…bringing new mines online.
Mining terminology will be explained, and questions answered, including interactively.
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Please let us know what you’d like to find out about gold mining in British Columbia!
NEW! An article about going Public in Canada for IR officers…(click here) from Darrell Heaps is the Co-founder, President and CEO of Q4 Web Systems a leading provider of on-demand disclosure risk management software.
INVESTOR EDUCATION RESOURCES
The members of the Council for Investor Education, a forum of not-for-profit organizations and regulators interested in empowering Canadians with the knowledge to make informed financial decisions, provide a wealth of online tools and information.
Advocis
www.advocis.ca
Alberta Capital Market Foundation
www.acmfoundation.org
Canadian Bankers Association (CBA)
www.cba.ca
Canadian Investor Protection Fund (CIPF)
www.cipf.ca
Canadian Securities Administrators (CSA)
www.csa-acvm.ca
Financial Consumer Agency of Canada (FCAC)
www.fcac-acfc.gc.ca
Financial Planners Standards Council (FPSC)
www.cfp-ca.org
Investment Dealers Association of Canada (IDA)
www.ida.ca
Investment Funds Institute of Canada (IFIC)
www.ific.ca
Investment Industry Association of Canada (IIAC)
www.iica.ca
Investor Education Fund
www.InvestorEd.ca
Mutual Fund Dealers Association (MFDA)
www.mfda.ca
Out of the thousands of mines operated in British Columbia, hundreds have had gold, and hundreds more are being sought after. The recent rise in world demand combined with dwindling world stockpiles have resulted in an increase in the price of gold…which has sparked a flurry of activity in the financing of gold mining operations.
When you refer to this site’s Mining Districts’ maps and the details of which properties are predominantly or significantly gold, you can find details about the Explorationists and the producers.
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What’s an Explorationist?
New Technologies
Technological improvements in the industry are providing explorers and developers with more reliable data to make determinations about a prospective property’s gold potential. Aeromagnetic surveys, Induction Polarization (IP), and sophisticated 3D computer modeling systems are some of the many types of new and/or enhanced capabilities the industry can employ to assess their gold prospects. This site will continually reveal these new technologies.
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What’s an aeromagnetic survey?
Enhanced Expertise
All around the world, Canadian talent is in demand for mining companies, since the National Standards and Reporting Requirements they adhere to are among the strictest in the world. The new National Instrument 43 – 101 for compliance for publicly-traded companies is just such a world-class standard.
You will see, for example: “E. Jones, P. Geo., a qualified person under National Instrument 43 -101, is in charge of the exploration programs on behalf of the Companies.”
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Explain the Instrument.
What this also means, now that the Provincial government has been more receptive to proposals regarding mine development, is that British Columbia has become a hotbed of activity, and that world-class expertise can be employed ‘right in our backyard’.
Jump to the maps!
Operational Efficiencies
This happens in any industry, of course, however the rate of technological development, the expertise being gathered and the various operational efficiencies in the mining industry are explosive. This site will reveal some of the new techniques being employed by the sector, especially those relevant to the production of gold in British Columbia.
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What’s hot?
Fast Facts
BC & CANADA: A GLOBAL CENTRE FOR MINERAL & MINING EXPERTISE
- British Columbia is internationally recognized as a global centre for excellence in mineral exploration and mining: over 25% of the world’s companies are located here. Additionally, BC is internationally recognized for its highly skilled mineral exploration and mining workforce including engineers, geologists, prospectors, lawyers and financiers.
- Source: Ministry of Energy and Mines
- Canadian mining and exploration firms hold the largest share of the global exploration market in Canada, United States, South America, Central America, Europe, and most recently, Africa. This position has reaped benefits for Canadian financial markets, with Canada emerging as a world centre for mining finance.
- Source: Mining Association of Canada, Facts & Figures 2003
- The Toronto Stock Exchange maintains:
- The largest peer group of mining companies in the world.
- The best access point for equity capital for exploration and mine development.
- A global destination for financing international projects.
- A broad degree of expertise in mining, investment banking, securities law and mining analysts.
- Source: Mining Association of Canada, Facts & Figures 2003
- In 2003, the Toronto Stock Exchange and TSX Venture Exchange raised $3.1 billion US in equity capital, outranking all other major exchanges around the world for raising equity capital.
- Source: Toronto Stock Exchange/Gamah International
- BC is the only jurisdiction in the world with a certification program for geochemical assayers
- Source: Ministry of Energy and Mines
- BC is one of the richest mineral areas of the world. There are over 14,000 known mineral occurrences in the province.
- Source: Ministry of Energy and Mines
Back with a Vengeance
British Columbia’s ‘core’ industry recovers
One of the greatest cyclical phenomena of our time is nicely underway and British Columbian miners and explorers are poised to lead the economic boom through the discovery and recovery of mineral resources around the world. A seemingly endless appetite for metal-related products is being driven by new world growth steamrolling through China and India with similar effects filtering around the globe.
Many have written about the swelling requirements and dwindling inventories of the broad spectrum of metals and related products driving the various commodity prices to heights not seen in 20 years. World mineral inventories are at or near 5 year lows for virtually all base metals other than zinc. This momentum has set the stage for a long-term ‘secular bull market’ in metals that may dwarf anything ever experienced in the mining sector.
British Columbia is positioned to ride high upon this wave as a leader from more than one perspective. With over 900 Mining Companies listing their head offices in Vancouver, the Province plays host to over 55% of the world’s listed exploration and mining companies. As the ‘secular bull’ rears its head, government bodies and investors alike should be keenly attuned to the opportunities about to reveal themselves for the next 12-15 year run.
Through the various commodity boom cycles, whether it be the Copper Boom of the 70’s or the Gold Boom of the 80’s, the immense mineral resources of British Columbia helped to elevate the Province’s socio-economic status within Canada and create a long-term sustainable industry. The making of a mine through a combination of meticulous science, engineering and finance can create one of the most pristine forms of economic growth: pure wealth creation with windfall profits for investors along the way.
But ‘Oh how the winds can change’, as we all witnessed through the 90’s, when a combination of declining commodity prices and poor government policy left the industry reeling and investors financing projects in virtually every corner of the world except B.C. So dramatic was the political impact that exploration for new mines and resources fell by nearly 90% from over $220 million in 1990 to an incredible low of $25 million by the end of the decade.
The first steps of rebuilding government policy and defining a safe and responsible mining code that permits the cohabitation of big industry with the sensitivities of a caring and protective society have taken place. Yes, there is still a lot of work for our political leaders ahead however the elimination of corporate capital tax and the re-establishment of the B.C. Mining Flow-Through Share incentives have helped hoist the provincial mining placard: “Open for Business!”
From this beaten and beleaguered scene comes a silver, gold, copper, and even molybdenum lining. In four short years the exploration and mining business is back with a vengeance as Business in Vancouver (May 17th –23rd) reported: over $280 million in new capital poured into the mining industry in B.C. during 2004. A large percentage of these funds were directed at existing mine facility upgrades and reopenings, and the momentum carried through to 2005. In the Cariboo district alone Taseko Mines restarted Gibralter, Cross Lake Minerals is recommissioning the QR Mine and Imperial Metals has recommenced production at their Mt. Polley operation.
New mines are also making headway through the permitting process, as the Red Chris Deposit was permitted for extraction by bcMetals Corp. and can be considered a real milestone for both the mining and finance community, along with their government and social partners.
A flood of new exploration dollars has re-ignited the search in all corners of the Province for everything from precious and base metals to coal and industrial minerals. Promising new developments are taking place in the Northwest at Nova Gold’s Galore Creek deposit, and Western Keltic’s Kutcho Creek project. South Central BC is extremely active with Skygold Ventures and Wildrose Resources on the Spanish Mountain property, Fijordland’s Woodjam and International Wayside’s persistence in the Barkerville camp. Abacus Mining and DRC Resources both have active plans in the Ashton Camp outside of Kamloops and Bralorne Pioneer Gold Mines has made great strides in the Bridge River area.
The majors have come to the party as well, with Teck Cominco funding Eastfield Resources’ and Lysander Minerals’ Lorraine-Jajay Project. The recent move by the Ministry of Energy & Mines to create an online mineral claim staking process assisted Barrick Gold in their acquisition of a huge tract of land surrounding Rimfire Minerals’ and Cangold's Thorn Property in the Northwest. The online staking program has seen soaring numbers of new claims being staked throughout the province.
Where there is a great turn around and resurgence often lies some of the greatest investment opportunities. The mineral wealth of British Columbia has never been in question. The surging tide of exploration funds will find strong technical mining groups that have protected solid mineral assets for decades. Active exploration programs will lead to new discoveries and the cycle will surely produce new examples of pure wealth creation: Mines in the Making.
Authored by Brad Aelicks
Geologist, Investment Strategist and Consultant to a number of junior Mineral Explorationists and Producers. A Partner in B&D Capital Partners; and a Co-developer of BritishColumbiaGOLD.com: an interactive website being designed to assist in the compilation and preservation of mining and exploration data to provide ease of access to research for due diligence and comparative reference.
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