Convention expands despite industry slump — PDAC honors Rebagliati and Keevil at awards ceremony

While the delegates at the 66th annual Prospectors and Developers Association of Canada (PDAC) convention walked with less of a swagger and spoke with less bravado than in 1997, they nonetheless showed up in full force to renew and expand contacts and to scrutinize the latest developments in the mining industry.

Total participation matched last year’s record of 7,200 people, and both the Trade Show and the Investors Exchange portions of the program were expanded over 1997.

“We’re incredibly pleased with the numbers,” said Tony Andrews, executive director of the PDAC. “It says that the show is good enough to attract people even in bad times, and that people are still confident in this market and that it will come back.”

Though low metal prices and lingering stains from the Bre-X Minerals debacle made for a generally sombre convention mood, the underlying technical and financial strength of the Canadian mining industry still shined through at the 4-day event, which featured exploration overviews, sessions on risk assessment, and short courses on property valuations and investor concerns.

“Quality, not quantity; that’s the theme of this year’s convention,” said one mining analyst as he slowly worked his way through the Investors Exchange hall, where 176 junior mining companies lined the aisles, anxious to show off their wares and shore up their near-empty coffers.

With much of the convention-floor gossip focused on which companies might not survive the industry downturn, there were several good-news stories, one being the eagerly awaited announcement that Aber Resources (ABZ-T) and partner Rio Tinto (RTP-N) had filed a proposal to build what will become the second diamond mine in the Northwest Territories.

There was continued exploration excitement over the San Nicolas massive-sulphide discovery made by Teck (TEK-T) and joint-venture partner Western Copper Holdings (WTC-T) in Mexico’s Zacatecas state from the bevy of juniors trying to build on that success.

Closer to home, enthusiasm for the myriad diamond exploration projects in Alberta was tempered by the fact that the dominant player, Ashton Mining of Canada (ACA-T), has yet to complete a critical 500-tonne bulk sample of the K14 kimberlite complex at its Buffalo Hills property, which it holds jointly with Alberta Energy (AEC-T) and Pure Gold Minerals (PUG-T).

The recent rise in silver prices gave many juniors such as Abcourt Mines (ABI-M), Yamana Resources (YRI-T) and Western Pinnacle Mining (WPN-V) a chance to move their silver projects to the front burner.

Another highlight was the awards ceremony, where the industry honored geologist Mark Rebagliati and mining executive Norman Keevil as “prospector of the year” and “developer of the year,” respectively.

In recognition of his contribution to British Columbia’s mining industry, Rebagliati was presented the Bill Dennis award for his “outstanding leadership” of the teams that discovered the QR gold deposit, the Mt.

Milligan and Southern Star porphyry deposits and the Kemess gold-copper deposit.

Rebagliati praised Robert Hunter and Robert Dickinson for being the “driving force” behind those B.C. discoveries and also his newest find, the Reforma volcanogenic massive sulphide deposits in the Campo Morado district of central Mexico. “But I lament the fact that so many Canadian geologists are working outside the country because land-use [conflicts] have reduced the incentive to work at home.”

After accepting his award, Rebagliati donned a red beret worn by Canadian athletes at the Olympic winter games in Japan and paid an indirect tribute to his famous son, Ross, who, weeks earlier brought home a gold medal for snowboarding. “It took 34 years of hard work to get to where I am today, while it took my son only two minutes and four seconds at Nagano,” he told a cheering audience.

Teck director Klaus Zeitler accepted the Viola R. MacMillan Developers Award on behalf of company president Norman Keevil, who was out of the country.

Zeitler praised Teck’s bold purchase of Cominco in 1986 and Keevil’s subsequent decision to move forward with the Red Dog zinc mine in Alaska.

“Norm also single-handedly struck a deal that gave Teck a 10% stake in Diamond Field Resources,” he added. “He recognized the value of Voisey’s Bay early on, even though he had to settle for second prize.”

Geophysicist Tony Barringer — inducted into the Canadian Mining Hall of Fame earlier this year — picked up one of two Distinguished Service awards for his development of exploration technology, particularly the INPUT (Induced Pulse Transient) airborne electromagnetic system. The other was presented to James Walker, for his years of service to the PDAC.

Pat Dillon and Barry Simmons of Teck each accepted a Special Achievement award for their work spearheading the PDAC Education Committee’s Mining Matters program, which teaches schoolchildren the importance of mining and minerals. And Brian Welchman accepted the Environment Award on behalf of BHP Minerals’ Island Copper mine on Vancouver Island, now in the reclamation stage. Welchman paid tribute to previous mine managers at Island Copper who, he said, helped “put the baby to bed right.”

Organizers improved the layout of the convention events, moving the popular Investors Exchange from last year’s cramped basement rooms to the more spacious Exhibit Hall C, adjacent to the Trade Show halls. The core shack and main conference room were both moved next to the Ontario Pavilion, which benefited from the added traffic.

The core shack displayed samples from some of the world’s major deposits, including Kumtor, Pierina, Bjorkdal, Sadiola Hill, Agua Rica, Sudbury, Raglan, Val d’Or and San Nicolas.

In the Ontario Pavilion, the Royal Ontario Museum (ROM) unveiled its plans to dramatically expand its mineral collection and display them in a renovated wing of the museum to be named the Earth Sciences Gallery.

Katherine Dunnell of the ROM said the museum is aiming to place the collection, in terms of quality and size, somewhere between the Viola MacMillan collection in Ottawa and the huge Smithsonian collection in Washington, D.C.

In an overview of Southeast Asian mining, John Steele, owner of Asian Tiger Resources, noted that while the last 12 tumultuous months have seen the drying up of financing for juniors — particularly those involved in early-stage gold exploration — the situation has finally begun to stabilize, with China emerging as the regional bright spot.

One of last year’s hot topics, mining in the former Soviet Union, drew noticeably smaller crowds, with many speakers emphasizing the virtues of patience and of taking a long-term view of the rewards to be gained from working in those countries.

Australians were in full force at this year’s convention, with Normandy Mining (NDY-T) Chairman Robert Champion de Crespigny speaking to the joint PDAC and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) luncheon about his company’s recent entry to North America.

De Crespigny said Normandy will continue to focus on the pursuit of “better ounces and costs rather than just ounces alone,” and on its long tradition of paying out dividends. He added that his company sought a listing in Canada because Australia is not as big a financial player.

Many juniors took comfort in de Crespigny’s positive attitude on investing in small companies and in his view that the price of gold will rise sooner rather than later.

De Crespigny praised the convention’s host city, saying that “Toronto is the home of the world’s mining industry — this is the only place in the world where you can hold a mining conference and attract 5,000 people.” He also remarked that Canada should take a leading role in the mining industry’s future and set the standards of business conduct.

The New Zealand delegation was heartened by the renewal of interest in their country’s mineral potential, as evidenced by the success of newly listed Anzex Resources (AZX-V), which is about to launch an exploration program at a platinum project on South Island. The junior also lured nickel authority
Anthony Naldrett to sign on as a board member.

“This project shows that it is possible to explore and work in New Zealand, despite our green reputation,” said Kiwi delegate Peter Waterman. “And I think we’ll see more activity in the months ahead.”

Other countries whose substantial delegations made an impact at the PDAC included Brazil, the Democratic Republic of Congo and Ireland.

Also present were representatives from Canadian provinces and territories, some more anxious than others to see mining activity pick up steam in their jurisdictions. Manitoba Mines Minister David Newman hosted a breakfast meeting to drive home the point that his province is open for business, and to announce recent budget items aimed at attracting more investment. “We want to work with industry to make Manitoba the best place to invest in exploration and mining,” he said.

Trevor Hardy, economic development minister for the Yukon, hoped that other gold producers would seek to emulate the success of Viceroy Resource (VOY-T) at its Brewery Creek mine near Dawson City. “It’s a good marketing point for the Yukon. We’re also pleased that the company has an agreement with local natives for exploration. As the industry sees more of this type of cooperation, companies will feel more comfortable.”

British Columbia delegates, meanwhile, were heartened to see government representatives once again wearing badges from the newly reinstated mines ministry. “This signals better times ahead,” said one government geologist.

“I think we’ll see some positive changes.”

Among the 410 booths of the Trade Fair could be found numerous technical innovations, including Christensen Products’ new diamond drill that can be dismantled into 20 man-portable components. The drill can core to depths of 1,000 ft., and is geared towards work in environmentally sensitive or remote areas, where building roads and drill pads is not feasible.

Some companies displayed DHT Technologies’ new retractable bit that allows a diamond bit to be changed down the hole at any time, eliminating the need to withdraw the drill string.

New Brunswick Crown corporation Research & Productivity Council (RPC) displayed some eyebrow-raising recovery results from their latest bacterial leaching tests on difficult chalcopyrite ores from various North American and Russian projects. RPC’s mineral processing group is currently refining its bioleach technologies to treat nickel, cobalt, lead and zinc ores.

As is tradition at the PDAC, several universities and colleges were represented, though many students voiced frustration at being unable to secure summer work as a result of weak markets.

For the first time, the general public was allowed in free to the Investors Exchange for one evening. Last year, some 400 people paid $50 each for a one-day pass into the exchange.