The Mining Association of British Columbia (MABC), which represents coal, metal, & mineral operations as well as smelters and companies developing new mines, did a study to look at the economic impact of 14 potential new mines for critical minerals & two mine expansions. The association says that critical minerals have the potential to be a major economic driver for British Columbia – bigger than the wood product manufacturing, movie industry and residential construction industries combined. The mining association in the province says that if more than a dozen new mines are approved, each one could earn an average of $1 billion in revenue per year.
The BC government aims to transform the mining sector and bring together First Nations, communities and industry in a responsible way to contribute to what the Minister of Energy, Mines & Low Carbon Innovation, Josie Osborne describes as the “world’s energy transition.” British Columbia is already Canada’s top producer of copper and has known deposits of 16 out of 31 critical minerals. Along with the study the MABC is also pushing the province for changes to regulations and other areas to help make the proposed mines possible. Recent studies report that if 14 new mines were approved and two currently operating were expanded each would generate a GDP of $24.8 billion over the average 24-year lifespan of each operation. These proposed mines would generate a combined $183.8 billion in labor income over their lifespans and more than $154 billion in tax revenue for all levels of government.
These 16 critical mineral mines are projected to earn $403 billion in revenue over a combined 385 years of operation, which is an average revenue of $1 billion from one year of operation at a critical mineral mine. This news was met with optimism from business, union leaders and some First Nations who have been negatively affected by mining in their territories in the past.
Although the NDP government is not known to be pro-mining their leader David Eby who won a razor thin majority back in October made a pro-mining announcement one month before the election with the promise to bring thousands of jobs and build a clean economy. He went on to say “Northwest BC has the critical minerals that are in high demand worldwide, giving us a huge advantage in the global movement to a clean economy. Our plan will get mining projects moving that grow BC’s economy, create good jobs across the Northwest, and benefit communities directly.” Since then the NDP has looked to the Green party to help prop up their majority government and is collaborating on many key issues, most notably healthcare. Mining was not directly mentioned in the release but under this agreement, the NDP has agreed to a review of its CleanBC program a year early, and to review the province’s forest management program, with the Greens to be “fully involved” in these reviews. Needless to say it will be interesting to see how this provincial government can work with the impending federal Conservative majority to fastrack these proposed mining projects to help bolster a weakened Canadian economy.
Let’s take a closer look at the 16 proposed mining projects in British Columbia.
The Turnagain Project is located in north-central British Columbia on the traditional territory of the Tahltan and Kaska Dena, and is among the largest undeveloped sulphide nickel deposits in the world. Turnagain is held in Hard Creek Nickel, a subsidiary owned 85% by Giga Metals Corporation and 15% by Mitsubishi Corporation. Annual production averaging 37,288 t/y Ni+Co in concentrate over the nominal full operating rate period (Y3 – 28) based on a 30-year project life with an extremely low strip ratio of 0.4 tonnes waste per tonne ore
The Kutcho property is located approximately 120 km east of Dease Lake in northern British Columbia, and consists of one mining lease and 46 mineral exploration claims covering an area of approximately 17,060 hectares. The site is accessible via a 900 m long gravel airstrip located 10 km from the deposit and a 100 km long seasonal road from Dease Lake suitable for tracked and low-impact vehicles. High Grade Copper Zinc development project with 22.8 millions tonnes in the Measured and Indicated Category at 2.26% CuEq representing over 1.1 billion pounds of copper equivalent contained metal (“CuEq”) Major Shareholders include, Capstone Mining and Wheaton Precious Metals, support with financing package of C$100 million; over C$34 million already invested
3. Schaft Creek – Teck Resources & Copper Fox
The Schaft Creek project is managed through the Schaft Creek Joint Venture (‘SCJV’) between Teck Resources Limited (‘Teck’) (75%) and Copper Fox (25%) with Teck as Operator. The SCJV was formed in 2013 to manage the exploration and development of the Schaft Creek project which hosts the Schaft Creek polymetallic copper deposit, one of the largest undeveloped porphyry copper-gold-molybdenum-silver deposits in North America. The Schaft Creek project covers 59,425 hectares of mineral concessions located in Tahltan Territory in northwestern British Columbia, approximately 60 kilometers (‘km’) south of Telegraph Creek, near existing seaport, transportation and clean hydroelectric energy infrastructure. Schaft Creek proposes a 21-year mine life producing approximately 5.0 B pounds (‘lbs’) or 2.3 Mt copper, 3.7 M ounces
4. Red Chris – Newmont & Imperial Metals
Red Chris is in the Golden Triangle of British Columbia. Newmont has a 70 percent interest in, and operates, the Red Chris mine and surrounding tenements in a joint venture with Imperial Metals Corporation (30 percent).
5. Galore Creek -Newmont & Teck Resources
Galore Creek is working to advance one of the world’s largest undeveloped copper-gold-silver deposits in NW British Columbia. Project construction would create an estimated 4,500 direct jobs over the five-year construction period, and once in production, Galore Creek would significantly increase Canada’s annual copper production, and create an estimated 1,200 direct jobs over the initial 21-year mine life. Newmont and Teck are currently conducting a comprehensive Prefeasibility Study planned to be completed in 2025. The study will further inform the updated Project design ahead of conducting a major regulatory process, proposed to be initiated in 2025
The KSM Project is the world’s largest undeveloped gold project as measured by reserves and resources. An updated Preliminary Feasibility Study (PFS) estimates proven and probable reserves total 47.3 million ounces of gold and 7.3 billion pounds of copper. The KSM Project has completed a joint harmonized environmental assessment review as outlined by the British Columbia Environmental Assessment Act and the Canadian Environmental Assessment Act. In July, 2014 the project received its Environmental Assessment Certificate from the provincial authorities. Final federal approval was received in December, 2014. KSM offers a 33-year mine plan, resulting in multi-generation employment in the region.
Taseko acquired the largest undeveloped Niobium deposit in the world in 2007, more than a decade before Canada, the United States and EU designated it a critical mineral. A 2014 pre-feasibility study for the Aley Project demonstrated robust project economics at long-term Niobium prices. North American governments support a diversified supply chain for Niobium given strong market demand, future applications as a battery metal and geopolitical risk factors. Taseko’s 100%-owned Aley Project in northeast British Columbia is one of largest undeveloped niobium deposit in the world. The project provides a long-term, critical minerals opportunity for Taseko, its shareholders and the people of northern BC. Niobium is a critical mineral used in the manufacture of high-strength low-alloy steels with a broad range of industrial, technological and medical applications, as well as in superalloys for jet engines, land-based turbines and other aerospace, military and energy applications. Niobium may also play a significant role in the evolution of fast-charging, high-power batteries for electric cars and trucks, heavy equipment, rail operations and energy storage. Aley has a mine life of 24 years and a production capacity of 9 million kilograms of Niobium annually – about 8% of 2022 global output. This would make Taseko the second-largest Niobium producer in the world, and solidify Canada as a leading international producer of this critical mineral.
8. Kwanika Stardust – Northwest Copper
NorthWest’s primary asset is the 100% owned, 47,000+ ha Kwanika-Stardust Project, which combines high-grade Cu-Au-Ag resources in the Kwanika Central Zone, and Stardust deposits with Cu-Au-Mo-Ag resources in the Kwanika South Zone deposit. Kwanika is located 150 km north of Fort St. James in the Omineca Mining Division of north-central British ColumbiaThe combined deposits present natural exploration efficiencies and provide numerous co-development scenarios to evaluate. Zones of very high-grade Cu-Au-Ag mineralization with strong lateral grade continuity, which in the case of the Central Zone comes to within metres of surface. Drill-ready exploration targets with high potential to augment current mineral resources, including the Transfer Target, our highest-conviction opportunity at Kwanika. Easy access via major logging roads and proximity to infrastructure including rail and power. Favorable topography allowing for ability to conduct year-round exploration. A positive PEA that highlights excellent optionality to optimize project economics at relatively low initial capital.
The Baptiste Nickel Project is located in central British Columbia and has the potential to be a high-margin, long-life, large-scale, and low-carbon mine with unparalleled flexibility to produce either a high-grade concentrate (60% nickel) for direct feed into the stainless steel industry or further refining into battery-grade nickel sulphate, cobalt precipitate, and copper concentrate products for the battery material supply chain. The Baptiste Nickel Project is in the early stages of development, with various options being considered for its design. The 2023 PFS Base Case outlines an open-pit mining project which will produce an average of 59,100 tonnes of nickel per year in concentrate over a 29-year mine life. A phased development approach is considered in the PFS, with an initial mill throughput rate of 108,000 tonnes per day (Phase 1), followed by an expansion to 162,000 tonnes per day (Phase 2). The expansion would be funded from free cash flow well after the initial after-tax payback period of 3.7 years. The mining strip ratio averages 0.41 in the Phase 1, and 0.56 overall for life-of-mine (excluding capitalized pre-stripping). Baptiste will utilize a conventional processing flowsheet with SAG-mill based grinding followed by magnetic separation, froth flotation, and a flotation tailings leach circuit. Overall, Davis Tube Recoverable (“DTR”) nickel recovery is estimated to average 88.7% for the life-of-mine, with 93% of the nickel produced contained in a high-grade flotation concentrate (60% nickel) and the balance (7% of nickel produced) contained in a mixed hydroxide precipitate (“MHP”) produced from a tailings leach circuit. Baptiste will be supplied with low-carbon power from the BC Hydro provincial electricity transmission grid, resulting in an estimated Scope 1 and 2 carbon intensity of 2.4 t CO2/t nickel produced, placing Baptiste within the lowest decile of global nickel production. The Project will be accessed by a road system consisting of upgrades and expansions to an existing forest service road network. All mine tailings and waste rock are proposed to be managed within a single integrated facility that will utilize open pit pre-stripping material and waste rock for embankment construction.
The first ever publicly available economic study for the Berg project lays out a 43-101 compliant Project plan showing a standalone Open Pit Copper Mine and concentrator facility lying within one of the largest undeveloped Copper belts in British Columbia. The project being within the traditional territory of the Wet’suwet’en First Nation and Wet’suwet’en peoples along with the Cheslatta Carrier Nation Surge looks to partner with the local communities and Nations make use of existing infrastructure such as road access and the fully hydroelectric green power grid in BC, to rapidly advance the project to the Pre-Feasibility (PFS) level of study to declare the first ever reserves for the Berg project in the near future.
The Ootsa Property is an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry Copper Mine, owned by Imperial Metals. The Ootsa Property contains pit constrained NI 43-101 compliant resources of copper, gold, molybdenum, and silver in the Measured and Indicated categories. This mineral resource estimate (MRE) is based on a drill hole database comprising approximately 152,000 metres of diamond drilling, including approximately 50,000 metres drilled since 2018. The MRE combines multiple mineralized zones at the Seel deposit area into a single pit constrained volume and demonstrates both the overall size of the mineral endowment at Ootsa, as well as the presence of near-surface, higher-grade subsets of the resource which could be evaluated in future studies as potential starter pits.
The 100% owned Wicheeda project is strategically positioned 80 km from Prince George and accessible from a major forestry service road, which connects to Highway 97. The 11,800-hectare Wicheeda deposit has power transmission lines, a gas pipeline and a major rail line nearby. Prince George, British Columbia is a mining centre with a skilled workforce. Port of Prince Rupert is 500km to the west and accessible by rail and road. The 2023 MRE comprises a 6.4 million tonne Measured Mineral Resource, averaging 2.86% (TREO); 27.8 million tonne Indicated Mineral Indicated Resource, averaging 1.84% TREO; and 11.1 million tonne Inferred Mineral Resource, averaging 1.02% TREO, reported at a cut-off grade of 0.5% TREO. The 2023 MRE is based on an updated geological model incorporating an additional 10,350 metres of drilling within 45 holes drilled by Defense Metals during 2021 and 2022.
In 2019, Taseko acquired Yellowhead for $13 million in shares. It is supported by well-developed infrastructure, and is ready to begin an environmental assessment process. Indigenous partnerships and engineering enhancements will be key to Yellowhead’s timely permitting and advancement. Both are advancing. Yellowhead is perfectly aligned to Taseko’s strengths as a mine operator, with a 25-year mine life and project characteristics similar to Gibraltar. The Yellowhead Project has potential to be one of the most significant copper mines in North America. Its future development will dramatically increase Taseko’s annual copper production and cash flow. Located in the Thompson‐Nicola region of British Columbia, approximately 150 km northeast of Kamloops near the town of Vavenby, the Yellowhead Project is envisioned as a 90,000 tonne-per-day open pit copper mine with a 25-year mine life, creating ~600 full time positions at site. The project site is well supported by existing, high-quality transportation infrastructure, and a skilled and capable workforce. Taseko is advancing the Yellowhead Project into the provincial and federal Environmental Assessment (EA) process, as well as an Indigenous-led EA process.
Northisle’s 100% owned North Island Project is located at the north end of Vancouver Island, west of the town of Port Hardy, BC. The project consists of a contiguous 50-by-8-kilometre block of 214 mineral claims covering an area of more than 34,000 hectares of mineral claims, adjacent and northwest of BHP Billiton’s now closed Island Copper Mine. Northisle’s wholly owned subsidiary North Island Mining Corp. holds mineral titles that cover most of this extensive, important northwest trending Mesozoic porphyry copper-gold-molybdenum district and hosts eight porphyry copper-gold occurrences at varying stages of exploration and development. The Hushamu Deposit is a high-level telescoped porphyry copper-gold- molybdenum system containing a significant rhenium content. It is an advanced-stage deposit with a current NI 43-101 resource. The Red Dog property is entirely enclosed within Northisle’s 100% owned claims. It was acquired by option for its potential to provide higher grade mineralization to a mining operation in the Hushamu area. The Pemberton Hills target is within a 6.5km long by 1.5km thick area of high-level, advanced argillic alteration within Mesozoic-age andesitic volcanic rocks in an early-stage exploration zone. The North Island Project also includes a number of relatively untested targets including Northwest Expo, Goodspeed and Macintosh.
15. Highland Valley – Teck Resources
Highland Valley Copper Operations is a copper and molybdenum operation located in south-central British Columbia. Highland Valley Copper (HVC) Operations is located approximately 17 kilometres west of Logan Lake and about 50 kilometres southwest of Kamloops in British Columbia. Teck has a 100% interest in HVC. HVC produces both copper and molybdenum concentrates through autogenous and semi-autogenous grinding and flotation. Once processed, the metal concentrates are exported overseas, where the majority is sold under long-term sales contracts to smelters.
16. New Ingerbell – Hudbay Minerals
The Ingerbelle pit was mined from 1972 to 1980 and then again from 1995 to 1996The New Ingerbelle project would involve a pushback of the existing Ingerbelle pit walls with a low strip ratio, offering higher precious metal content and utilizing the existing Copper Mountain mill infrastructure and mining equipmentRecommencing mining activities at New Ingerbelle would bring many long-term economic and social benefits to local First Nations, communities and other stakeholders
To learn more about these projects and mining in British Columbia please visit: https://mining.bc.ca/
