- nwt exploration & mining prospects 2012 -

- NWT Exploration & Mining Prospects 2012 -

Presentation to NWT Chamber of Commerce AGM Yellowknife – April 3, 2012

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Discussion Items

• Industry update • Our challenges • Encouraging signs • How you can help

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Current NWT Mineral Production

CanTung (tungsten)

Snap Lake(diamonds)

Ekati(diamonds)

Meadowbank(gold)

Diavik(diamonds)

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Value of Mineral Production, 2011

NWT, Nunavut and Yukon Mining Production

$653 $682$779

$874

$1,667

$2,112

$1,790

$1,638

$1,831

$2,123

$1,507

$2,045$2,144

$349 $385$321

$272

$35 $35 $4 $32 $35 $13 $0

$317$414

$0

$500

$1,000

$1,500

$2,000

$2,500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(p)

$C M

illio

ns

NWT

Nunavut

Yukon

Natural Resources Canada – March 2012

• Diamonds are up by $40 million over last year, and tungsten is up by $55 million. • Benefits to date: 17,000+ person-years employment; $9+ billion northern business• Important that we take actions to help sustain and even grow this production.

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Future of NWT Mines

• Find ways to sustain our mines• Attract investment in new mines and exploration to sustain benefits

Mine lives - years1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Ekati

Diavik

Snap Lake

Cantung

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NWT: What’s “in the wings”

Howard’s Pass (YT)(base metals)

Prairie Creek (base metals, silver)

Gahcho Kue(diamonds)

Nechalacho(rare earths)

Ormsby (gold)

NICO(gold, cobalt, bismuth)

Pine Point (base metals)

Courageous(gold)

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6 New NWT Mining Opportunities

PROVISO: This data is taken from public information that represents best case scenarios. Actual project timing and opportunities are subject to market prices & conditions, regulatory approvals and timing, investor approval, etc.

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036

Prairie Creek

Gahcho Kue

Nechalacho

Tyhee

NICO

Pine Point

• NWT has 6 mining proposals advancing. • They are not slam dunks, but we are optimistic • Could help fill the void when diamond mines decline & close

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Total value of 6 proposed new NWT mines

• Capital investment – about $1.8 billion • Annual operating expenditures – about $700 million• Jobs at peak – about 1,400 • Total person years employment – more than 25,000• Total expenditures over life – more than $14 billion

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But, need for more exploration

Mining Project Name (Operator) Commodity Expected

ProductionExpected

JobsExpected Capital Costs

($C millions)

Yellowknife Gold Project (Tyhee) Gold 2014 238 $ 170

NICO (Fortune)

Gold, Copper, Cobalt, Bismuth 2013 150 $ 200

Thor Lake(Avalon Rare Metals) Rare Earth Metals 2014 200+ $ 228+313

Prairie Creek (Canadian Zinc) Silver, Zinc, Lead, Copper 2013-14 220 $ 60

Gahcho Kue(De Beers, Mtn. Province) Diamonds 2015 360 $650

Pine Point(Tamerlane) Zinc, Lead 2013 225 $ 135

TOTAL 1,400 jobs $ 1.8 billion

EKATI mine Diamonds 1,229 jobs

• If all 6 NWT projects become mines, the direct jobs will just equal jobs at the Ekati mine. Five years after Ekati, Diavik is slated to close.

• We need more exploration.

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Grassroots Exploration: building the future

Base metals, diamonds

DiamondsGold

Gold

Base metals, silver

Gold

Lithium

Copper

Copper, nickel, cobalt

Copper, gold

Nickel

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We must attract more exploration

NWT, Nunavut and Yukon Mineral Exploration

$0

$100

$200

$300

$400

$500

$600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$C M

illio

ns

NWTNunavutYukon

NRCan March 2012

• Languishing NWT exploration investment (compare Yukon and NU). • Upside? We created this, therefore we can change this.

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The NWT Challenges

• Maturing industry – Ekati to close in 2019– Requires many new mines to replace world class Ekati and Diavik

• Languishing exploration • Regulatory complexity

– complex and outdated MVRMA; significant public concern sending small grassroots projects to EA

• Access to land – Protected Areas Strategy – $25m with no balancing Economic

Development strategy has helped conservation bias • Aboriginal consultation & participation

– consultation requirements not clear, Akaitcho Exploration Agreements, unsettled land claims

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Encouraging Signs

• 6 new mines proposed • Small upturn in exploration investment• Regulatory certainty – legislation being modernized

by Federal government • GNWT Priority – NWT Mineral Development Strategy

• Aboriginal support

– Akaitcho MOU, Tli Cho’s Kwe Beh Working Group – Pan Territorial Training Strategy

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How you can help

• You are all leaders who have influence • Get to know your mining neighbours

– Think and work creatively with them • Offer your support through:

– Chamber of Mines, Commerce, Construction Assoc.– Your land claim organizations – Government leaders and officials

• Strength in working together– We can create our own Opportunities

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Why it matters

Courtesy Diavik Diamond Mines Inc.