The Prospectors & Developers Association of Canada (PDAC) proudly celebrated another landmark gathering with PDAC 2025, which brought together 27,353 participants to explore premier business prospects, investment opportunities, and professional networks in the global mineral exploration and mining sphere. Showcasing more than 1,100 exhibitors-including government representatives, corporate leaders, and technical specialists from across the world-PDAC 2025 upheld its reputation as the industry’s most influential convention.

“Year after year, the PDAC Convention is the place to be for unveiling the latest market insights, advances in technology, and for fostering essential partnerships,” said PDAC President Raymond Goldie. “In 2025, we continued that legacy by bringing together not only a wide array of educational programming focused on crucial areas such as capital markets, Indigenous engagement, career development, and sustainability, but also a dynamic trade show and company presentations to investors, offering exhibitors and attendees invaluable opportunities for business growth and collaboration.”

Beyond highlighting trailblazing innovation and thought leadership, PDAC 2025 provided a vital platform for dialogue between industry stakeholders and government officials. PDAC’s leaders used this forum to emphasize the impact of forward-looking public policy on maintaining Canada’s competitive edge in the mineral sector.

“Minerals are the backbone of modern technology and are indispensable to our daily lives, highlighting the essential role of mineral exploration and mining in Canada’s economic strength and resilience,” Goldie noted. “This week, PDAC was encouraged by the federal government’s commitment to extend the Mineral Exploration Tax Credit (METC) for two years. Our priority now is to ensure that this commitment becomes law, and we’ll continue pushing for it to have a permanent place in Canada’s fiscal framework.”

Goldie extended his heartfelt appreciation to everyone who helped make PDAC 2025 such a success-volunteers, speakers, sponsors, delegates and PDAC’s staff. The association eagerly anticipates welcoming participants back for PDAC 2026, March 1-4, 2026.

About PDAC

The Prospectors & Developers Association of Canada (PDAC) is the leading voice of the mineral exploration and development community, an industry that employs more than 664,000 individuals, and contributed $132 billion to Canada’s GDP in 2021. Currently representing over 8,000 members around the world, PDAC’s work centers on supporting a competitive, responsible, and sustainable mineral sector.

Media Contact:
Scott Barber
Senior Manager, Communications
Prospectors and Developers Association of Canada
416.362.1969 X244
sbarber@pdac.ca

The reform of the Mineral Tenure Act (MTA) in British Columbia has emerged as a pivotal initiative in the province’s resource management strategy. In light of the recent decision in the case of Gitxaala v British Columbia, the B.C. government recognized the need to modernize both the MTA and the Mineral Tenure Online (MTO) systems to better align with contemporary stakeholder expectations and environmental standards.

The primary objectives of the MTA Modernization include reforming the processes surrounding mineral claims, improving transparency, and enhancing the consultation framework with Indigenous Nations. These reforms are designed to ensure that resource development respects Indigenous rights while facilitating economic growth within the mineral exploration and mining sectors. Stakeholders have voiced a mixture of hope and concern regarding the pace and inclusivity of the reform process, emphasizing the need for careful consideration to prevent adverse impacts on communities and the environment.

The reform process hinges on the establishment of mutual agreements that recognize the interests of Indigenous Nations alongside those of the mining industry. These agreements are vital for ensuring that projects are developed sustainably and that the benefits of resource extraction are equitably shared. Ongoing communication strategies must be employed to keep Indigenous communities informed and engaged, ensuring their perspectives and feedback are incorporated into the modernization discussions.

The Association for Mineral Exploration (AME) has released a comprehensive “What We Heard” report capturing feedback from a broad array of stakeholders concerning the MTA Modernization effort. This report, derived from extensive consultations with members, Indigenous groups, and other stakeholders, highlights the multifaceted dynamics underpinning the reform process.

Consultation methods included town hall meetings, online surveys, and one-on-one discussions, enabling a wide array of voices to be heard. Among the key findings was a consensus on the necessity for a clear consultation standard that adheres to the principles laid out in the ruling from Gitxaala v British Columbia. Members of AME expressed concerns about the government’s limited engagement with the mineral exploration industry, particularly regarding the timeline for feedback submissions, which some stakeholders deemed insufficient.

The report advocates for the government to prioritize the incorporation of member feedback into the MTA Modernization framework. Recommendations from the AME report stresses the importance of ensuring that independent prospectors and exploration companies are not marginalized in the new system, therefore protecting their interests while also aligning with the broader commitment to sustainability and responsible resource management.

The implications of the MTA Modernization for the mining industry are profound, particularly in the context of the growing demand for critical minerals. As the global economy shifts toward green technologies, the exploration and development of these minerals will become increasingly vital. This shift presents both challenges and opportunities for the mineral exploration sector in British Columbia.

Critical minerals (CMs) are essential for our electric and digital future. There are currently 31 CMs, with six considered the most important: Cu, Co, Mn, Li, Ni and Rare Earth Elements.

What makes these minerals critical?

CMs have no substitutes and face potential disruption in supply. In efforts to reduce the level of greenhouse gases in the atmosphere, governments worldwide are securing large supplies of CMs to build electric vehicles, electronics, solar panels and wind farms towards a green future.

The price of copper is rising; it has increased 25% since the beginning of 2024 and the price already has touched $5 per pound. Electricity flows through copper because it is highly conductive and thus copper is a key player in electrification.

Besides copper, electric vehicles (EVs) require large (more than 1,000 pounds) batteries that are made up of lithium, cobalt, manganese, nickel and steel.

Manganese is used in steelmaking, as an alloy that converts iron into steel. Manganese resources in seabed deposits of ferromanganese nodules and crusts are larger than those on land. The USGS states that current global reserves of land-based manganese deposits are adequate to meet global demand for several decades, so before we start mining the seafloor, there are plenty of opportunities to discover land-based Mn deposits to meet our demand.

Tellurium and silver are integral to solar panel manufacturing. Wind turbines need manganese, platinum, and rare earth magnets like Indium. Rare-earth elements (REE) are necessary components of high-tech consumer products, such as cellular telephones, computer hard drives and flat-screen monitors and televisions. REEs also have significant defense applications, including missile guidance systems, lasers, and radar and sonar systems. (USGS)

What is our government doing to help meet CM demand?

The Canadian government has created teams dedicated to finding ways to improve upon the processes that approve a mine to operate and speed up the permitting process.

There is an online map showing CM mines and advanced projects across Canada. It shows most of Canada’s CM projects are still in development stage. Refer to https://atlas.gc.ca/critical-minerals/en/

Government funded and industry sponsored NRCan’s Critical Minerals Centre of Excellence leads the development and coordination of Canada’s policies and programs on CMs, in collaboration with industry, provincial, territorial, Indigenous, non-governmental and international partners. Backed by a $4Bn budget in 2022, it is supposed to set a course for Canada to become a global supplier for CMs.

In BC, a CM advisory committee has been established. According to the BCGS, British Columbia has made significant progress in the last few years on exploration-permitting timelines, including a reduction in the backlog of permits.

To increase investment attraction and promote BC businesses, the new Energy and Mines Digital Trust project (EMDT) has been set up to provide a transparent platform for companies to manage credentials for ESG strengths. This allows companies to demonstrate to investors that their products meet the highest global standards throughout the CM supply chain. If widely adopted, this technology has the potential to improve regulatory efficiency and transparency, leading to new market opportunities for BC’s natural-resource industry.

In many parts of our resource-rich country, there are still mineral deposits waiting to be developed, if only the infrastructure was there! There are numerous gold and copper-rich greenstone belts in NWT, Canada, for example. It is too expensive to conduct exploration when the project is located too far from an airport to get helicopter or float plane support.

Perhaps NRCan’s Critical Minerals Centre of Excellence could define mineral-rich zones in remote regions, in collaboration with local First Nations, as high priority areas, for new roads and power lines. Building infrastructure and creating new CM frontiers would significantly increase the chances of discovering multiple CM projects and turning them into producing mines.

What can geologists and mineral exploration companies do to help meet the CM demand?

It takes between 7 and 15 years to go from prospect to an operating mine. If it proves to be economic, can we speed that up?

Faster turnaround times are needed in geochemistry work. Soil, rock, and drill core samples are shipped from field project sites to the lab for analysis. These assay results drive decisions in moving forward, which is the nature of mineral exploration. Each sample batch takes anywhere from 3 weeks to 3 months before sample prep and analysis is complete.

In Canada, the field season is short and improving detection limits on handheld field analyzers would add speed and efficiency to exploration programs. Drilling could be in real time if elemental field analyzers could be used in mineral resource estimations. Laboratories would remain useful for select samples as part of external QAQC, Round Robin programs.

Core logging is a slow process, and each geologist sees something different. Drill core logging and sampling needs to be automated and consistent, so that the data can be directly imported into advanced 3D modelling software.

New advances in core logging include CoreScan and geoLOGr, which scan the outside of the drillcore with high-resolution photography and hyperspectral analysis. HyperSpectral analysis of drill core sees so much more than the human eye; and is capable of identifying individual mineral grains.

Embracing AI applications in mineral exploration will help geologists deal with the massive amounts of imagery, structural, mineral, chemical and geophysical data coming out of these core scans and use it to advance the project rapidly.

Robert Simpson, President and CEO of PRA Communications, remarked, “Contrary to common belief, the mining industry excels in public communication. Extensive communication is not only necessary but imperative for obtaining permits to operate, securing permissions from First Nations, and gaining social acceptance from the public.”

The KSM Project, situated in Northwestern British Columbia’s Golden Triangle, presented a substantial communication challenge for Seabridge Gold. To acquire environmental certifications, the project necessitated demonstrating its lack of adverse environmental impacts and garnering support from various stakeholders and rightsholders, including five First Nations, two cities three municipalities, and British Columbia, Canadian, Alaskan and US governmental bodies.

“It’s imperative to recognize that it’s not enough to simply demonstrate a project’s lack of adverse effects on the environment. Proponents must also prioritize building relationships with the First Nation community members, residents living in nearby cities, towns and municipalities, and, in our case, with British Columbia, Canadian, Alaska and US regulators. It’s only after mutual trust is established that meaningful and transparent discussions about the scientific aspects of the project can start,” says Brent Murphy, Senior Vice President Environment for Seabridge Gold.

To initiate the project, PRA Communication undertook comprehensive baseline research. This involved assessing the levels of knowledge and support among various stakeholder and rightsholder groups regarding the KSM Project. Furthermore, the research aimed to pinpoint specific concerns held by these groups.

“The best communication strategies are founded in research and measurable. Once the baseline is established you can measure and show the successes of your communications to regulatory decision makers along the way,” says Simpson.

“In my previous experience, strategic communication and reputation management was either overlooked during the environmental assessment process or relegated to scientists and engineers, who are not professional communicators. At Seabridge we understood professional, comprehensive, strategic and measurable communication and public relations was critical for our success.,” says Murphy.

From the executive suite to environmental scientists and camp workers, every member of Seabridge Gold’s team actively engaged in project communications. This commitment was particularly evident during the rigorous eight-year environmental assessment process, which stands as the largest and most comprehensive ever conducted in North America. Throughout this period, company representatives participated in over 500 trade shows, round tables, community meetings, information sessions and technical working groups listening and answering people’s questions and concerns about the KSM Project.

Simpson emphasizes that for success to thrive, communication must hold a prominent place in management’s agenda across the entire organization. Every individual, be it employees, consultants, or contractors, should feel empowered, recognizing themselves as ambassadors for the company.

The KSM project was granted an Environmental Assessment Certificate by British Columbia, a certificate from the federal government, and EA approval under terms of the Nisga’a Treaty. Upon submission of the Environmental Assessments community and First Nations support for the KSM Project measured through polling and interviews was 76 percent. In addition, the Tahltan Nation voted 83 percent in favor of the KSM Project and the Impact Benefits Agreement.

Seabridge Gold received letters of support for their environmental assessment application from the Cities of Terrace, Smithers, the Districts of Stewart and Hazelton. The company successfully signed benefit agreements with the Nisga’a Lisim and Tahltan Central Governments, a Sustainability Agreement Gitanyow Wilps represented by the Gitanyow Hereditary Chiefs’ Office and the Gitxsan Hereditary Chiefs endorsed the KSM Project with a letter of support for the environmental assessment approval.

Upon certification of the KSM Project, Seabridge Gold was acknowledged by the Province of British Columbia as an industry model for its consultation, engagement and external communication.

“I want to make it clear, the SABRE Award reflects the work and commitment of a lot of people over the years, both at PRA Communication and Seabridge Gold, so in all respects this award is a shared,” says Simpson.

The SABRE Awards are the world’s largest PR awards programme dedicated to benchmarking the best PR and communication work from across the globe. The Gold Sabre Awards were presented at a ceremony in New York, May 1, 2024.

Antimony, a metalloid situated in the nitrogen group of the periodic table, distinguishes itself through its unique properties, making it an invaluable resource in a myriad of industrial applications. Its primary manifestation, antimony trioxide, serves as a critical flame retardant, imbuing materials such as plastics, textiles, and electronic devices with essential safety features. The significance of antimony extends far beyond this primary use, permeating various sectors and highlighting its versatile nature.

In the realm of electrochemical applications, antimony is indispensable in enhancing the mechanical strength and charging characteristics of lead-acid batteries. These batteries play a crucial role in automotive and stationary storage applications, where reliability and efficiency are paramount. Furthermore, antimony’s ability to alloy with lead and other metals to improve hardness and mechanical robustness is leveraged in the production of projectiles, electrical cable sheathing, and type metal for high-resolution printing processes. This metallurgical innovation underscores the element’s pivotal role in modern manufacturing and technology.

The chemical industry also benefits from the unique properties of antimony compounds, which serve as catalysts in the manufacturing of polyethylene terephthalate (PET) polymers. These polymers are essential in the production of various consumer goods, ranging from beverage containers to clothing. Additionally, antimony’s catalytic properties are exploited in the synthesis of certain plastics and chemicals, further illustrating its critical role in contemporary industrial processes.

The global extraction of antimony is a complex endeavor, with China leading the world in production, followed by Russia, Bolivia, and Tajikistan. The Stibnite Mine in Idaho, USA, represents a significant North American operation, indicating efforts to diversify the global supply chain of this critical mineral. Companies such as Hunan Gold Corporation Limited in China and the United States Antimony Corporation (USAC) are at the forefront of this industry, engaging in the mining, processing, and smelting of antimony. Their activities ensure the steady flow of antimony to meet global demand, highlighting the strategic importance of this element in the international market.

The processing of antimony ore is a detailed and sophisticated process that involves crushing, grinding, flotation, and sometimes roasting and smelting to produce antimony metal or antimony trioxide. This process is tailored to the characteristics of the ore and the requirements of the end product, aiming for the highest possible purity and specific form desired for industrial use.

As the demand for antimony continues to grow, driven by its applications in flame retardants, lead-acid batteries, and emerging technologies such as microelectronics and photovoltaic materials, the industry faces the challenge of balancing economic growth with environmental stewardship and health safety. This necessitates ongoing innovation in mining technologies and processing methods, as well as the implementation of rigorous regulatory standards to mitigate the environmental impact of antimony production.

Antimony’s role in modern industry cannot be overstated, with its diverse applications underscoring its critical importance. The future of antimony production hinges on sustainable practices, recycling, and the development of alternative materials, which will be essential in reducing the environmental footprint of this invaluable element. As the world moves towards a more sustainable future, the antimony industry must navigate the complexities of economic development, environmental protection, and health safety to continue its contribution to global technological advancement.

By Bruce Downing, M.Sc, P.Geo.

Tailings are residual material(s) or waste generated or created from ores, gravel, tar sands, grain, lumber, manufacturing, volcanoes, to name a few. Tailings can occur as mine, anthropogenic and geologically derived entities.

Mine Tailings

Mine tailings are generated from the processing of ores and are generally stored under water to prevent the process of metal leaching and/or acid rock drainage. Large land-based tailings storage facilities (TSF) are created to store the mine effluent. In some situations, tailings have been stored in natural underwater reservoirs such as in lakes or in the ocean. Ocean tailings storage facilities would eliminate some of the land-based mine TSF if the mine is close to the ocean and environmental parameters can be met.

Some companies are now proposing to mine mineral rich sediments on the ocean floor, create tailings from it and then possibly return the tailings back to the original place, the ocean floor.

Some companies are investigating the re-processing of historic mine tailings as they may contain some economical precious and base metals such as gold, silver, copper, zinc, (to name a few). With today’s better analytical techniques, rare earths may also be discovered. There are also some new innovative methods of re-processing and/or re-purposing (i.e. carbon sequestration) mine tailings.

Anthropogenic Tailings

Anthropogenic tailings (plastics, gypsum board, garbage, diapers, food, household products etc) can be considered as residual waste which are discarded into landfill sites (LFS). The present “throw away culture” leads to the tailings of modern life (i.e. plastics) found in some water environments. Some environmental tailings can be recycled or burned to produce heat and / or electricity. It is speculated that LFS can be re-mined for materials that can be re-cycled and / or re-used.

Geologically Derived Tailings

Geologically derived tailings can be construed as residual material resulting from volcanic activity such as volcanic ash which can permeate the atmosphere, waters and land for up to several hundreds of years. Some of these deposits are beneficial to mankind (i.e., bentonite, zeolites).

Discussion

Mine and environmental tailings should be considered in terms of waste management. Mine tailings are collected, stored and monitored in designated site-specific areas. Environmental tailings can be dispersed in regulated and unregulated landfill sites with a major human intervention of disposing environmental tailings anywhere on land, rivers, lakes and ocean. Many LFS are not monitored and are subject to seepages of potential toxic residues. Waters have become a labyrinth of visible floating dispersion sites.

Tailings storage facilities have the propensity to fail with human consequences and / or release elements to the environment that may have a harmful impact. Landfill sites have the propensity to catch fire and release toxic fumes as well as release elements via ground / surface water to the environment. Methane gas is also produced from some landfill sites.

I would surmise that more micro-nano plastic and disposable (plastics) material is of greater amount and dispersed more widely than mine tailings. You can re-mine and to some extent re-cycle mine tailings as mine tailings are relegated to confined areas whereas plastics and other human-derived wastes are dispersed over ocean, lakes, rivers and landfill sites.

Both TSF and LFS require environmental permitting, engineering and monitoring. Both can be re-claimed back into a natural environment over time (hundreds of years). Both have the propensity to contain material that can be re-processed and/or re-cycled. Historic TSF and LFS should be reviewed. As this planet is becoming littered with “tailings” that should be addressed for removal, re-cycling, re-processing, re-using and re-disposal, there are attempts to rectify this problem through innovative and alternative approaches.

In-situ mining, also known as solution mining, does not utilize traditional drilling, blasting, hauling, milling and waste rock disposal used in underground or open pit mining.

Instead, the in-situ mining process involves drilling wells into the orebody and injecting a solution that dissolves the valuable metals that are then pumped to surface.

Since expensive conventional mining methods (open pits and underground workings) and related processing facilities are not needed, mining costs are lower, making in-situ mining suitable for ordinarily uneconomic orebodies economically viable – typically copper, uranium and gold deposits.

In addition, in-situ mining offers the advantages of no noise, no dust, and no abandoned open pit mines, tailing ponds and dams. In-situ mining can also achieve higher recovery rates than traditional mining methods.

However, in-situ mining is only a suitable mining method under certain conditions, including porous rocks that allow the mining solution to dissolve the target metal.

Another type of in-situ mining is bioleaching, a process whereby microorganisms are used to dissolve the minerals in the orebody. The solution is then pumped to the surface for recovery. The tiny bacterial organisms “eat” the metals of interest. The resulting solution is then pumped to the surface. No cyanide is used as in traditional heap leach mining.

Another in-situ mining method is hydrothermal mining that involves heating the orebody to high temperatures to dissolve the minerals. The solution is then pumped to the surface for recovery.

It is important for long-term monitoring of the mining solution and the surrounding rock formations to ensure that the mining process is safe and effective.

There are a number of mining companies around the world that use in-situ mining techniques to extract minerals and metals. Some examples include Taseko Mining Ltd. [TKO-TSX, LSE; TGB-NYSE American] that uses in-situ mining to extract copper at its Florence project located midway between Phoenix and Tucson near the community of Florence, Arizona.

Development of the project is being performed in two phases – the first phase is a production test facility, which is followed by the second phase commercial facility.

Uranium Energy Corp. [UEC-NYSE American; U6Z-FSE] is employing low cost, environmentally friendly, in-situ recovery or ISR mining technology at its fully licensed projects, including Palangana (Texas), Burke Hollow (Texas), and Reno Creek (Wyoming) uranium projects.

Energy Fuels Inc. [EFR-TSX; UUUU-NYSE-American] owns and operates the Nichols Ranch in-situ recovery mine and processing facility. Nichols Ranch is located in the productive Powder River Basin district of Wyoming and has a total licensed capacity of 2 million pounds of U₃O₈ per year.

Heathgate Resources Pty. Ltd. operates the in-situ Beverly and Beverly North uranium mines approximately 550 km north of Adelaide, Australia.

Critical minerals can be defined as minerals that have few or no substitutes; are strategic and somewhat limited commodities; or are increasingly concentrated in terms of extraction and, even more, in terms of processing location.

Canada currently has a list of 31 such minerals of which six are prioritized in the government’s strategy for their distinct potential to spur Canadian economic growth and their necessity as inputs for priority supply chains. These are lithium, graphite, nickel, cobalt, copper, and rare earth elements. Critical minerals are considered the building blocks for the green and digital economy and are used in a wide range of essential products, from mobile phones to solar panels, electric vehicle batteries to medical and healthcare devices, to military and national defence applications. Growth in these applications is expected to boost their global demand and according to the International Energy Agency, the energy sector’s overall needs for critical minerals could increase by as much six times by 2040. The North American zero-emission vehicle (ZEV) market alone is estimated to reach $174 billion by 2030, creating more than 220,000 jobs in mining, processing, and manufacturing.

In 2019, the federal government launched the Mines to Mobility initiative to build a sustainable battery innovation and industrial ecosystem in Canada and according to the government, to date, the initiative has attracted more than $7 billion in announced investments to capture opportunities in the growing global battery market. The federal government plan to continue to support Canada’s battery ecosystem through the Canadian Critical Minerals Strategy by building value chains that position Canada as a global leader in the innovative and sustainable production of ZEV batteries.

But keeping up with demand will prove challenging for two reasons. One is low supply, as current deposits of critical minerals are simply not enough to meet the expected surge in demand and the other issue is that deposits tend to be concentrated in the hands of a few countries that can have outsized influence on supply chains. Critical mineral processing is even more concentrated, with China the dominant player. China not only is a key provider of the world’s copper, lithium, and rare earth minerals but also refines as much as two-thirds of all cobalt, over 55% of lithium, 40% of copper, and close to one-third of the world’s nickel.

Many countries are now increasing investment in the search for and processing of critical minerals to diversify their supply chains and reduce vulnerabilities to regimes that may become unfriendly. New deposits are being discovered – in January 2023, Sweden’s state-owned mining company announced the largest discovery of rare earth minerals in Europe which in time should reduce the region’s reliance on imported resources.

Canada released “The Canadian Critical Minerals Strategy” in 2022, which seeks to power a green and digital economy. The country possesses significant amounts of many of the world’s most critical minerals as well as the expertise to scale up exploration of these minerals.

Australia, already the top lithium extractor globally, has redoubled its exploration efforts, with government officials suggesting peak discovery could still be 5-10 years away.

As for processing, in the U.S., the Biden administration’s Inflation Reduction Act (IRA) encourages reshoring and friend-shoring (i.e., relocating processing back to the U.S. or to geopolitical allies). The IRA will invest billions of dollars to bolster critical mineral supply chains for the U.S. and its allies. For example:

In order to receive tax credits, the IRA requires car manufacturers to process a significant portion of battery materials locally or in a country partnered with the U.S. on a free trade agreement, such as Canada, Mexico, Australia, or Chile.

In 2022, the U.S. Defense Department awarded Australia’s Lynas Rare Earths, the only major producer of rare earth materials outside of China, a $120 million contract to establish a processing facility in the U.S.

Australia, which previously sent raw minerals to China for processing, is now looking to restore this activity to secure its own supply chain and that of its allies. The latter are looking for clear alignment of their long-term national interests with those of their critical mineral suppliers. Where such interest is not clearly aligned, investment ownership is being redesigned. For example, late in 2022, Canada toughened its foreign ownership rules, requiring three Chinese firms to dispose of their stakes in domestic lithium miners.

Meanwhile the search is on for alternatives to expensive critical minerals, or new technology solutions that reduce the use of these materials in the production of key components. In 2020, Tesla announced plans to develop a cobalt-free EV battery. By Q1 2022, almost half of its EVs had no cobalt in their batteries.

Another promising innovation is battery recycling. EV batteries typically last between 10 and 20 years, so by the time EV demand eventually peaks, many batteries will be available for recycling, reducing the need for additional supplies of newly extracted ores. In fact, by 2040, the IEA expects that extracting copper, lithium, nickel, and cobalt from old batteries could reduce the supply requirements of these minerals by some 10 %.

In extreme cases, resource nationalism can lead to the weaponization of critical minerals. This risk can be most acute where autocratic regimes are emboldened by a rapid influx of money and leverage from critical minerals. Such nations can become unfriendly or unstable, and at the very least can make life difficult for international buyers. In 2010, China banned exports of critical minerals to Japan for a few months due to a dispute in the East China Sea.

More recently, Russia weaponized its natural gas supply to Europe as a strategy in its war with Ukraine. Both instances show how critical mineral supply can be imperiled by the whims of authoritarian regimes or those prone to shifting alliances.

The Dynamics of Risk and Reward in Mining Stocks:

Mining stocks operate in a dynamic environment influenced by multiple factors, including commodity prices, operational challenges, geopolitical conditions, and regulatory requirements. These factors significantly impact the profitability and stock performance of mining companies, making it crucial for investors to evaluate the potential risks and rewards involved.

Quantifying Risk:

Quantifying risk in mining stocks involves utilizing various quantitative measures to assess the likelihood and impact of potential downside outcomes. One commonly used metric is volatility, which measures the degree of price fluctuations in a stock. Mining stocks with higher volatility indicate greater price fluctuations and, consequently, higher risk.

Another metric is beta, which measures a stock’s sensitivity to market movements. A beta above 1 indicates that the stock is more volatile than the market, while a beta below 1 suggests lower volatility. By analyzing beta, investors can gain insights into the relative risk of a mining stock compared to the broader market.

Standard deviation is another valuable tool to quantify risk. It measures the variability of a stock’s price returns over a specific period. A higher standard deviation indicates higher volatility and risk associated with the stock.

Financial ratios also assist in assessing risk in mining stocks. For example, the debt-to-equity ratio indicates the proportion of a company’s financing that comes from debt. A high debt-to-equity ratio can increase financial risk, as it indicates higher levels of debt that the company needs to service.

Quantifying Reward:

Assessing the potential reward in mining stocks involves analyzing key financial indicators to evaluate the growth and profitability prospects of companies. Earnings per share (EPS), revenue growth, and return on equity (ROE) are crucial metrics for understanding a company’s financial performance. Positive EPS growth, robust revenue growth, and high ROE suggest the potential for attractive returns.

Valuation metrics provide further insights into the reward potential of mining stocks. The price-to-earnings ratio (P/E), price-to-book ratio (P/B), and dividend yield are commonly used metrics for valuation analysis. A lower P/E or P/B ratio indicates that a stock may be undervalued relative to its earnings or book value, potentially offering an opportunity for higher returns. A higher dividend yield indicates potential income generation through dividends.

Real Numbers and Investment Decisions:

Real numbers play a pivotal role in facilitating informed investment decisions in the mining sector. By incorporating quantitative analysis, investors gain a more objective understanding of the risk-reward trade-off. Real numbers provide a foundation for comparison among mining stocks, enabling investors to identify those with more favorable risk profiles or higher potential returns.

Discounted cash flow (DCF) analysis is a quantitative model widely used in the evaluation of mining stocks. DCF considers projected future cash flows and discounts them to their present value. By comparing the calculated intrinsic value to the current market price, investors can assess whether a mining stock is undervalued or overvalued.

While quantitative analysis using real numbers is valuable, it is essential to supplement it with qualitative research. Factors such as the competence of the management team, operational efficiency, and industry growth prospects should be considered alongside the quantitative indicators. The synergy between quantitative analysis and qualitative research allows for a more comprehensive understanding of the risk-reward dynamics in mining stocks.

Real numbers not only provide quantitative insights but also foster a disciplined approach to investment decision-making. They help investors move beyond subjective opinions and emotional biases, enabling them to make more rational choices based on concrete data. By relying on real numbers, investors can establish a framework for evaluating mining stocks consistently and objectively.

It is important to acknowledge that while quantifying risk and reward in mining stocks provides valuable insights, it is not without limitations. The mining industry is inherently complex, and external factors such as commodity price fluctuations, regulatory changes, and geopolitical events can significantly impact the performance of mining stocks. These factors are often difficult to quantify and require ongoing monitoring and assessment.

Moreover, real numbers alone do not capture the entire investment landscape. Investors must also consider the qualitative aspects of mining stocks, such as the company’s competitive position, technological advancements, environmental sustainability, and social responsibility. These factors can influence a company’s long-term prospects and ultimately impact its risk and reward profile.

In conclusion, quantifying the risk vs. reward in mining stocks through the use of real numbers is a valuable tool for investors. Real numbers provide a quantitative framework to evaluate the potential risks and rewards associated with mining investments. Metrics such as volatility, beta, financial ratios, EPS, revenue growth, and valuation indicators aid in assessing the risk profile and reward potential of mining stocks. However, it is important to supplement quantitative analysis with qualitative research and ongoing monitoring of industry trends. By integrating real numbers and qualitative insights, investors can make more informed investment decisions in the dynamic and challenging realm of mining stocks.

Investing in mining stocks can be a lucrative endeavor, but it also carries inherent risks. Understanding the delicate balance between risk and reward is essential for investors to make informed investment decisions. Fortunately, through the application of quantitative analysis, investors can quantify the potential risks and rewards associated with mining stocks. Real numbers play a pivotal role in empowering investors to assess the risk-reward dynamics and make more confident investment choices. In this article, we will explore the concept of quantifying risk vs. reward in mining stocks and delve into how real numbers can assist investors in their decision-making process.

The Dynamics of Risk and Reward in Mining Stocks:

Mining stocks operate in a dynamic environment influenced by multiple factors, including commodity prices, operational challenges, geopolitical conditions, and regulatory requirements. These factors significantly impact the profitability and stock performance of mining companies, making it crucial for investors to evaluate the potential risks and rewards involved.

Quantifying Risk:

Quantifying risk in mining stocks involves utilizing various quantitative measures to assess the likelihood and impact of potential downside outcomes. One commonly used metric is volatility, which measures the degree of price fluctuations in a stock. Mining stocks with higher volatility indicate greater price fluctuations and, consequently, higher risk.

Another metric is beta, which measures a stock’s sensitivity to market movements. A beta above 1 indicates that the stock is more volatile than the market, while a beta below 1 suggests lower volatility. By analyzing beta, investors can gain insights into the relative risk of a mining stock compared to the broader market.

Standard deviation is another valuable tool to quantify risk. It measures the variability of a stock’s price returns over a specific period. A higher standard deviation indicates higher volatility and risk associated with the stock.

Financial ratios also assist in assessing risk in mining stocks. For example, the debt-to-equity ratio indicates the proportion of a company’s financing that comes from debt. A high debt-to-equity ratio can increase financial risk, as it indicates higher levels of debt that the company needs to service.

Quantifying Reward:

Assessing the potential reward in mining stocks involves analyzing key financial indicators to evaluate the growth and profitability prospects of companies. Earnings per share (EPS), revenue growth, and return on equity (ROE) are crucial metrics for understanding a company’s financial performance. Positive EPS growth, robust revenue growth, and high ROE suggest the potential for attractive returns.

Valuation metrics provide further insights into the reward potential of mining stocks. The price-to-earnings ratio (P/E), price-to-book ratio (P/B), and dividend yield are commonly used metrics for valuation analysis. A lower P/E or P/B ratio indicates that a stock may be undervalued relative to its earnings or book value, potentially offering an opportunity for higher returns. A higher dividend yield indicates potential income generation through dividends.

Real Numbers and Investment Decisions:

Real numbers play a pivotal role in facilitating informed investment decisions in the mining sector. By incorporating quantitative analysis, investors gain a more objective understanding of the risk-reward trade-off. Real numbers provide a foundation for comparison among mining stocks, enabling investors to identify those with more favorable risk profiles or higher potential returns.

Discounted cash flow (DCF) analysis is a quantitative model widely used in the evaluation of mining stocks. DCF considers projected future cash flows and discounts them to their present value. By comparing the calculated intrinsic value to the current market price, investors can assess whether a mining stock is undervalued or overvalued.

While quantitative analysis using real numbers is valuable, it is essential to supplement it with qualitative research. Factors such as the competence of the management team, operational efficiency, and industry growth prospects should be considered alongside the quantitative indicators. The synergy between quantitative analysis and qualitative research allows for a more comprehensive understanding of the risk-reward dynamics in mining stocks.

Real numbers not only provide quantitative insights but also foster a disciplined approach to investment decision-making. They help investors move beyond subjective opinions and emotional biases, enabling them to make more rational choices based on concrete data. By relying on real numbers, investors can establish a framework for evaluating mining stocks consistently and objectively.

It is important to acknowledge that while quantifying risk and reward in mining stocks provides valuable insights, it is not without limitations. The mining industry is inherently complex, and external factors such as commodity price fluctuations, regulatory changes, and geopolitical events can significantly impact the performance of mining stocks. These factors are often difficult to quantify and require ongoing monitoring and assessment.

Moreover, real numbers alone do not capture the entire investment landscape. Investors must also consider the qualitative aspects of mining stocks, such as the company’s competitive position, technological advancements, environmental sustainability, and social responsibility. These factors can influence a company’s long-term prospects and ultimately impact its risk and reward profile.

In conclusion, quantifying the risk vs. reward in mining stocks through the use of real numbers is a valuable tool for investors. Real numbers provide a quantitative framework to evaluate the potential risks and rewards associated with mining investments. Metrics such as volatility, beta, financial ratios, EPS, revenue growth, and valuation indicators aid in assessing the risk profile and reward potential of mining stocks. However, it is important to supplement quantitative analysis with qualitative research and ongoing monitoring of industry trends. By integrating real numbers and qualitative insights, investors can make more informed investment decisions in the dynamic and challenging realm of mining stocks.

For a gold exploration geologist, soil geochemistry is the most important and critical phase in making grassroots gold discoveries. Chemical analysis of soil samples can tell us the presence of gold and other metals in the rocks below. A high concentration of gold in soil can indicate a gold mine waiting to be found, and areas devoid of gold in soil can be eliminated and help reduce claim areas in size.

Soil exists worldwide, and on the Moon, and on Mars. Soil overlies bedrock and plants and trees grow in soil. Rainwater passes through the soil into the bedrock to recharge groundwater aquifers. Oxygen and CO₂ from the air are carried with the rainwater, making the soil pH a bit acidic, which speeds up the rock weathering processes. As the rocks deteriorate below the surface, their mineral components break down into elemental form and are released into the overlying soils. This is termed residual. Hence, residual (as opposed to transported) soils carry a similar geochemistry to the rocks below, and any gold, copper or lithium that is hosted within the bedrock will show up in the soil geochemical analysis.

Soils are stratified; have you ever dug a pit in the backyard and noticed the topsoil ΓÇÿband’ in the pit is darker than the rest of the pit? Or found dry, gravelly soil in the base of the pit? Simply put, the surface soil, where vegetation exists, is called the O soil. Directly beneath the surface is the 2-10 centimetre-thick dark brown A soil that is organic and has many fine white-haired plant rootlets growing in it. Beneath the A soil is the B soil, which is usually targeted in soil sampling surveys because the B soil is a zone of accumulation, and the geochemistry of the B soil is most similar to that of the underlying bedrock.

Field geologists train technicians to recognize the different soil bands, to consistently sample the same soil type across the survey. This approach is more effective than systematically sampling at say a 20-centimetre depth because of the uneven nature of soils; in some areas the B soil may be deeper down than in other areas.

Stream sediment sampling is the most common first pass field survey, which can cover the entire claim at a density of 1 sample per square kilometre. Positive results, such as multiple sediment samples in one area that are anomalous for gold, will prompt a soil survey.

Rather than blanket the entire claim with soil sampling surveys (that is costly!), a focused approach is recommended – one that follows up on stream sediment anomalies or identifies favourable lithologies (ex. permeability of rock type may play a role), structures, or geological setting (ex. the way some rock types were folded together and fractured or sheared).

Companies with gold projects at tropical latitudes, such as Central America, West, East and Central Africa, Southeast Asia and South Pacific, will most likely have artisanal gold mining activities on their claims, and these (often illegal) gold mine locations can be vectors for soil geochemistry target areas.

Soil surveys typically have shorter point distance (40 metres apart) than soil line distance (100 metres apart). This is because gold systems are often long and thin in plan view (ex. A vein that is 300 metres long and 5 metres wide). To increase the chances of intersecting a gold vein, soil lines are wider spaced and soil point stations are spaced closely together.

In shear-zone hosted gold systems, the main shear zone is first identified and target areas for soil surveys are then designed perpendicular to this shear trend. That is because gold mineralization will most likely be hosted subparallel to the main shear trend.

Soil samples are bagged and on average weigh 500 grams to 2 kilograms each. Soil samples are dried and crushed and then reduced in size to about 100 to 150 grams. Some companies have their own preparation process facility at their project site, which can save a lot of money on (1) transport and shipment of large samples to the lab and (2) crushing of samples.

On average, a 25-gram soil sample will cost $70 to get analyzed for gold and multi-element data. Lab turnaround time for results may be as long as three months during busy seasons.

The single soil point gold values are then gridded using basic software techniques such as Inverse Distance Weighting, or IDW, where the software searches from the point outwards radially for another data point and averages out the value between the data points within the radius. This grid is the gold in soil map that is commonly used to present results.

Note that gold in soil anomalies may be translocated down a slope, which is why it is important to also analyze the soil sample for multi-elemental data, as some elements associated with gold, such as tellurium, titanium and tungsten, are highly residual and can help identify gold in soil dispersion patterns and better focus trench and drill targets.

Positive results from soil analysis, often in tandem with geophysics, such as a ground magnetic survey, drives drill targeting. Since a 200-metre-deep diamond drillhole can cost around $40,000, it is critical to place those drill collars in the best possible position to intersect gold mineralization at depth.

A sizeable, positive bulls-eye anomaly for gold in soil is either trenched next or drilled directly, or both. Trenchwork is enormously valuable as a dataset. Trenchwork is effectively a horizontal drill hole when sampled by applying QAQC, and mapped systematically and similarly to logging and sampling of drill core. Labour intensive, but trenching is much cheaper than a diamond core drill hole, so why not trench a lot in the soil target area and give work to the locals?

Here is an example of a 2.4-million-ounce gold deposit I discovered with 553 soils, in Liberia for Hummingbird Resources. Local artisanal gold mining prompted the soil grid location. Soil lines were spaced 200 metres apart, sample stations 40 metres apart. The B soil was sampled. The nearby Dugbe Shear Zone trends northeast and soil lines were placed perpendicular to this shear trend. Samples were shipped to ALS laboratory for crushing, grinding, splitting and 25-gram samples were put in Aqua Regia digest and resulting liquid analyzed for gold and 46 multi-elements by ICP MS.

The resulting positive gold in soil anomaly, defined as greater than 250 ppb gold in soil, is 1.7 km in length and 400 metres in width, and was trenched and drilled into a 2.4-million-ounce resource grading 1.2 g/t gold.

Soil sampling increases the chances of finding a gold deposit by generating drill and trench targets, while lowering exploration risks for a project.

Acid rock generation and drainage (ARGD) and metal leaching (ML) processes have been ongoing throughout geological time and will continue into the future. ARGD and ML are natural “reaction processes”. Additional to this are the man-made (anthropogenic) effects which exacerbate the processes by breaking up acid generating material so as to increase the rate of ML in many areas, be it mining, construction or other development projects that require removal and disposal of acid generating material.

ARGD is produced by atmospheric oxidation of the relatively common iron-sulphur minerals pyrite (FeS₂) and pyrrhotite (FeS) in the presence of naturally occurring sulphur consuming microbes. Significant amounts of heavy metals may be solubilized by this process as the pH is reduced through the generation of sulfuric acid.

Since micas and clays can behave like acids in water, the low pH may not always be due to ARGD, though ARGD may be the initial cause of the breakdown of the original minerals leading to the development of micas and clays. ARGD impacts surface water and sub-surface water quality and may result in elevated levels of various chemical compounds and metals due to metal leaching.

In a mineralized area, oxide (gossan, limonite) and supergene development are a result of the ARGD process. Hence, geologists are on the outlook for gossanous outcrops.

Oxide – supergene processes, which can take place over millions of years, may result in supergene enrichment that forms significant tonnages and enriched grade which may be economical to mine. These types of deposits form dominant copper resources in South America. Some supergene enriched copper porphyry deposits and massive sulphide deposits have an overlying supergene manto (blanket).

Gossans and related alteration can be recognized and mapped using remote sensing data. This method has been used extensively and successfully by explorationists in locating prospective mineral sites generated from natural acid rock generation and related alteration of rocks, particularly in non-vegetated (arid) terrain.

It is interesting to note on maps that some topographic features have ARGD related descriptive names such as Gossan Island, Red Mountain, Red Creek or Sulphide Creek or Bitter Creek, Iron Creek and Alum Creek, as in the case of the Summitville Mine area in Colorado.

It might be appropriate to conclude that low grade mine waste dumps could in fact become mineral enriched (supergene) with geological time. The effects of ARGD have economic benefits or costs depending upon the time frame in which they are considered. The environment and landscape geochemistry adapts to changing conditions throughout geological time.

Generally, ARGD studies should be initiated during the exploration stage and continue during mining operations, reclamation and through post closure monitoring in order to characterize and differentiate between natural sources and anthropogenic sources of ARGD. This will also allow the environmental practitioner to perform accurate risk assessments for metals from the natural surroundings. Understanding the potential for ARGD is recognized as a key component of mine planning, waste rock disposal and reclamation. The primary objective of this planning is to reduce and control ARGD through proper handling and disposal of the rock most at risk of generating ARGD.

An example of a massive sulphide deposit with an in-situ overlying supergene zone is the Windy Craggy copper-cobalt-gold-silver-zinc deposit in northwestern British Columbia. This gossan – supergene zone has resulted in a potentially mineable resource. Drilling demonstrates supergene copper sulphide enrichment (chalcocite, native copper, chalcanthite) and limonite overlain by gossan caps enriched in gold and silver. An initial historical gossan and supergene resource was calculated using a 0.5% copper cutoff to be 3.2 million tonnes grading 2.55 % Cu, 0.82 g/t Au and 8.88 g/t Ag.

Additional information can be reviewed in Acid Mine Drainage, Rock Drainage, and Acid Sulfate Soils: Causes, Assessment, Prediction, Prevention, and Remediation, First Edition. Edited by James A. Jacobs, Jay H. Lehr, and Stephen M. Testa.ΓÇ¿2014 John Wiley & Sons, Inc.

Another source of information is through the online acid rock drainage course from EduMine.

]]> https://resourceworld.com/natural-acid-rock-generation-drainage-and-metal-leaching-impact-on-exploration-mining-and-reclamation/feed/ 0