< Previous20 Connect with us on Facebook and TwitterVisit us online at www.CanadianMiningMagazine.com 21 FEA TURE n a world filled with opinions, controversies, and disagreements, one issue most Canadians can agree on is the push for a greener future. Reducing greenhouse emissions, preserving our natural environment, and transitioning to a low-carbon economy – these are all goals worth pursuing. However, who would have thought that mining would play an essential role? On April 7, 2022, Canada opened the eyes of many Canadians when it announced its first ever Critical Minerals Strategy – a new set of laws, regulations, and tax incentives to help boost the supply of critical minerals, or the building blocks of technology and green energy solutions. “The world economy is going green,” Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said at the last Federal Budget. “Canada can be in the vanguard, or we can be left behind.” Think cobalt for electric car batteries and wind turbines. Think titanium for solar panels and aerospace technology, or copper for circuit boards and electronics. The fact is, the average Canadian understands these technologies are important, but has no clue what it takes to actually produce them. Mention mining, and it sometimes conjures images of our grandparents’ generation – destructive, archaic, invasive, and damaging to the natural world. Since 2006, I have spoken to thousands of Canadians about the merits of charity flow-through shares with an immediate liquidity provider to reduce their taxes, and if they wish to, give more to charities of their choice. You may have heard about flow-through shares before, which makes sense, considering they have been around since 1954 (three years older than your RRSP). In essence, flow-through shares are a financial instrument used by the government to raise capital for junior mining companies, through a tax deduction equal to the amount invested. For nearly 70 years, our government has understood how important it is to provide seed funding to junior companies so they can create jobs, stimulate the economy, and hopefully, find that next big deposit of minerals. This financial structure has not only generated billions in financings for these junior mining companies, but more than a $1 billion in giving to registered Canadian charities. When a junior mining company plans to drill, our clients purchase flow-through shares for the 100 per cent tax deduction and donate them to charities of their choice. The shares are then sold to a pre- arranged liquidity provider at a discount a moment later, eliminating any stock market risk. The charity receives the cash proceeds, but issues a donation tax receipt to the donor, generating a second 100 per cent tax deduction. By Peter Nicholson, WCPD Group of Companies Critical Minerals: Giving Canada a Chance to Shine22 Connect with us on Facebook and Twitter In addition, some clients choose to keep the cash proceeds from the liquidity provider for themselves, generating at least a 25 per cent rate of return via tax savings with no stock market risk. It’s a tried-and- true model – the guaranteed investment certificate of tax deduction, I like to say – with 9 advanced tax rulings and over 6,000 WCPD client tax filings, with no Canadian Revenue Agency filing issues. However, of the thousands of clients I’ve met over the years, how many do you think cared about mining? The answer is almost none, except for mining executives, who are high-taxed clients and buy flow- throughs. Not only did they not care about mining, but as I said earlier, they often had objections. Isn’t mining bad for the environment? For some clients, that was enough for them to walk away. Suddenly, with the rise of critical minerals, mining isn’t quite so scary anymore. Through my discussions with clients, they now understand that there is no path to a low-carbon future without them. This sentiment is being felt across the country. In June 2022, the Mining Association of Canada released the results of a nationwide poll showing unprecedented support for Canadian mining and an increased understanding on the role it must play in producing green technologies. Abacus Data found in a recent study they conducted that 80 per cent of Canadians had a positive feeling about the producers of minerals and metals in Canada. Meanwhile, we have a treasure trove of riches in this country. Canada has long been a world leader in mining – and critical minerals are no exception. In total, Canada has identified 31 minerals that are deemed “critical” to this future economy, not to mention our national security. While China is currently dominating the rare earth metal market, there is no reason why Canada and its allies cannot provide for themselves. The economic shocks felt by Russia’s war in Ukraine clearly demonstrates – it is important to seek opportunities in our own backyard. Now we just have to discover them. As part of their Critical Minerals Strategy, the government has pledged $3.5 billion to boost infrastructure and improve the supply chain. In addition, it Suddenly, with the rise of critical minerals, mining isn’t quite so scary anymore. Through my discussions with clients, they now understand that there is no path to a low-carbon future without them.Visit us online at www.CanadianMiningMagazine.com 23 has introduced an enhanced tax credit. Explorations involving critical minerals, such as copper, nickel, lithium, and cobalt, will now kick out a 30 per cent tax credit (equal to a 60 per cent tax deduction), on top of our 100 per cent tax deductions from the flow-through structure. Already, our firm has done four of these deals involving critical minerals. According to a recent report by the World Bank, the production of critical minerals could increase nearly 500 per cent in the years to come to meet the surging demand for clean energy. For the technology and green energy sector, the stakes are high. In September 2021, at a mining conference Tesla CEO Elon Musk famously quipped: “Please mine more nickel. Tesla will give you a giant contract for a long period of time if you can mine nickel efficiently and in an environmentally sensitive way.” Put simply, this is an opportunity for Canadian mining to shine. From the production of green energy solutions to the decision to buy flow-through shares, Canadian mining is something we can all feel invested in. M PETER NICHOLSON IS THE PRESIDENT AND FOUNDER OF WEALTH, CREATION, PRESERVATION, AND DONATION (WCPD) INC. FOR DECADES, HE HAS BEEN A RECOGNIZED LEADER IN CANADIAN TAX ASSISTED INVESTMENTS, WITH A SPECIAL FOCUS ON CHARITY FLOW-THROUGH SHARES WITH AN IMMEDIATE LIQUIDITY PROVIDER. THROUGH THIS STRUCTURE, WCPD HAS GENERATED MORE THAN $1 BILLION IN FLOW-THROUGH FINANCINGS FOR JUNIOR MINING COMPANIES. MEANWHILE, THROUGH HIS WORK WITH DONORS, FOUNDATIONS, INSTITUTIONS, AND BOARDS, HE HAS HELPED CREATE MORE THAN $250 MILLION FOR CHARITIES ACROSS CANADA.26 Connect with us on Facebook and Twitter FEA TURE keena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine, which is in northwest British Columbia’s ‘Golden Triangle’ region. The Golden Triangle has earned this designation because, for the last 100 years, it has hosted some of the richest gold ore bodies in the world and contains a trove of other valuable mineral deposits. The Eskay Creek mine Located within Tahltan Nation territory, the area around the Eskay Creek mineralization site has been of considerable interest to prospectors for decades, with exploration drilling leading to the discovery of the 21A and 21B zones in 1988. The Eskay Creek mine subsequently opened for business in 1994 and, over the next 14 years, the mine produced approximately 2.2 million tonnes of ore and was regarded as the world’s highest-grade gold mine (and fifth- largest silver mine) by volume. Unfortunately, all good things must eventually come to an end, and the mine shut down in 2008. Now 14 years later, Skeena aims to turn back the clock at the site with its proposed Eskay Creek Revitalization Project. This significant undertaking is focused on reopening the historical underground mine as a conventional truck and shovel open-pit operation that will produce a gold-silver concentrate on-site, which will then be transported off-site to third- party smelters. According to Skeena’s 2021 Prefeasibility Study, Eskay Creek is expected to produce 2.45 million ounces of gold and 70.9 million ounces of silver over the course of its approximate 10-year operating life. The life of the mine all-in-sustaining costs at the project are estimated to be US$548 per ounce gold equivalent, calculated based on a gold price of US$1,550 per ounce and a silver price of US$22 per ounce. “Based on our engineering projections today, Eskay Creek mine will have one of the lowest production costs per ounce of gold anywhere in the world,” says Skeena Resources CEO, Walter Coles. “Where we anticipate Eskay to sit on the cost curve, we are confident that it will be built and it will operate for the entirety of the predicted mine life, if not longer should exploration around the property turn up more metals.” When up and running, the project will deliver 250 good-paying jobs to the area and generate $733 million in direct benefits to the province in mineral and income tax, which would bring tremendous value to shareholders, employees, Indigenous Nation partners, surrounding communities, and the company. “There have been a lot of changes in Canada over the last few decades regarding By Paul Adair, CMM Staff Writer Making History: Eskay Creek is First to have Permits Authorized by Indigenous Government The Eskay Camp Project site. Photo courtesy of Skeena Resources. FEA TUREVisit us online at www.CanadianMiningMagazine.com 27 how the federal and provincial government, as well as the mining industry, interacts with Indigenous communities; and the Golden Triangle is a microcosm of that,” says Coles. “In the past, companies would come build their mines with the needs of the First Nations maybe just being an afterthought and any wealth taken out of the community. But it’s a different story today where mining companies hold a different view about how prosperity should be shared amongst all stakeholders, not just the shareholders.” Coles adds, “As a company, we recognize that we’re guests here in Tahltan Nation territory and we’re only going to stay here so long as we have their endorsement and support.” In 2021, the Tahltan Central Government became shareholders of Skeena, making an equity investment of five million dollars. A historic agreement In early June 2022, the Province of British Columbia and the Tahltan Central Government reached a major consent- based decision-making agreement, which marked another crucial step bringing Eskay Creek closer to fruition. Through this historic agreement, Eskay Creek will be the first mining project to have its environmental assessment certificate authorized by an Indigenous government. “As an already developed mine site with existing road access, waste management facilities, nearby access to green power, and robust economics, gaining consent from the Tahltan Nation on whose unceded land Eskay Creek is located, is a crucial step in an efficient approval process for the project,” said Justin Himmelright, Skeena’s Senior Vice President of External Affairs and Sustainability in June. “It also provides certainty of the Tahltan Nation’s legal authorization to revitalize Eskay Creek. We look forward to working with our Tahltan partners and the governments of British Columbia and Canada to bring this iconic project back into production.” This historic agreement completely changes the traditional approach to environmental assessments on the Tahltan Nation’s land by introducing a new framework that ensures Tahltan values and rights are respected from the outset. This ‘reverse approach’ to gaining consent is a new model for sustainable mining that sets the standard for how mining companies should interact and partner with their local Indigenous communities, and it is one that has the potential to lead to unprecedented business certainty of Indigenous consent for a mining project. “Our thought was that if we can start involving the local communities at the onset in everything that we are going to do, by the time we put in a permit application, the Tahltan will be fully up to speed on what’s going on,” says Coles. “We want to make sure that everyone is on board for everything we’re doing and there are no surprises. This starts with transparent communication and a spirit of collaboration. It is a business strategy that creates a win-win outcome for everyone involved.” Most significantly, this agreement signifies an important step forward by all parties to implement the principles of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) in the environmental assessment process. “Today marks an exciting step forward in the evolution of the relationship between the Tahltan Nation and the Province of British Columbia,” said Chad Norman Day, President of the Tahltan Central Government. “Reconciliation is not achieved with just one step. It requires ongoing innovation, collaboration and leaning into discomfort. For the Tahltan people, strengthening and preserving our culture, values and independence is why we keep pushing forward on this journey. The Tahltan Central Government has been clear on behalf of all Tahltan people that there will be no world-class mining jurisdiction in Tahltan Territory without robust Tahltan stewardship, which must include world-class wildlife and fisheries management, strong environmental mitigation measures and recognition of our 1910 Declaration. The Tahltan Nation and the province have a long journey ahead walking and living on the path to reconciliation and we look forward to building on our relationship together. I thank all of those who have worked on this historic agreement which better recognizes Tahltan jurisdiction over our homelands. It has been generations in the making. Mēduh.” M28 Connect with us on Facebook and TwitterVisit us online at www.CanadianMiningMagazine.com 29 FEA TURE t’s called environmental DNA (eDNA) surveillance. This new technology is revolutionizing species at risk inventories and is perfect for the Canadian mining industry. eDNA uses genetic markers to detect species. This technology provides the mining industry with an entirely new approach to species at risk surveillance on lands intended for development or expansion. eDNA is genetic material released into an animal’s habitat such as skin, turtle shell “scutes,” fish scales, gametes, mammal guano, or hair. eDNA can be used to infer the presence / absence of species at risk through indirect sampling. This pioneering technology delivers high accuracy, repeatability, and ease-of- use, even in the off-seasons or in areas where traditional species detection can be fraught with challenges. As a rapid, Environmental DNA to the Rescue: Detecting At-Risk Species Crucial to Mine Development and Expansion By Dr. Scott Tarof and Mike Jones, Azimuth inferential sampling method, eDNA is a powerful addition to the consultant’s toolkit. Obtaining accurate data on what species live on or adjacent to lands intended for mine development or expansion is critical to the approvals process (see sidebar). Consultants have relied on traditional, labour- intensive methods to search a property systematically to determine species’ presence/absence. While such surveys, conducted by highly trained ecologists, are very useful, they have limitations and regulatory agencies may require permits for certain species (which may not be approved). In traditional field surveys, presence / absence is based on visual / auditory observations of active individuals and habitat characteristics at particular times of the year. Although a property is typically visited many times, if a species is quiet or inactive during field visits it may be overlooked. Looking for species at risk is particularly challenging for species that are cryptic, secretive, or occur infrequently in small numbers over a large area. Proving they are not present means many visits to ensure they are not missed. Observer experience and skill, survey timing, habitat complexity, turbid water obscuring observations, and reliance on multiple habitats tied to seasonality or life stage are additional factors that influence accuracy and precision of traditional field surveys. Consider trying to determine if Blanding’s Turtles (Threatened) occur in an expansive wetland with mosaic patches of tall emergent aquatic vegetation, open water, and hidden basking sites? Or Lake Sturgeon (Endangered) in a deep river? Or Little Brown Bats (Endangered) roosting in snag trees in a large woodland? Next >