19/97
  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 Introduction to Mining in Ontario
06 Government of Ontario Interview
07 Ontario Mining Association (OMA) Interview
08 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Interview
09 Navigating Uncertainty
10 Ormston List Frawley LLP Interview
11 PDAC Interview
12 Section 2: Production and Development in Ontario
13 Production in Ontario
14 Map of Ontario Mines
15 Newmont Interview
16 Barrick Gold Interview
17 Wesdome Gold Mines Interview
18 Alamos Gold Interview
19 Evolution Mining Interview
20 A New Wave of Ontario Gold Mines
21 Argonaut Gold Interview
22 Equinox Gold Interview
23 Industry Thoughts: Production and Development in Ontario
24 Section 3: Mining Finance
25 Mining Finance and Investment
26 Insights from the Toronto Stock Exchange
27 PearTree Securities Interview
28 Triple Flag Interview
29 Red Cloud Securities Interview
30 IBK Capital Interview
31 Stifel Interview
32 Roth Canada Interview
33 Industry Thoughts: Mining Finance Trends
34 Section 4: Toronto's Global Reach
35 Toronto’s Global Reach
36 Toronto's Global Reach Map
37 Rupert Resources Interview
38 Eloro Resources Interview
39 Industry Thoughts: Global Operations Based in Ontario
40 Eyes on Latin America
41 Torex Gold Resources Interview
42 Minera Alamos Interview
43 Sable Resources Interview
44 Section 5: Junior Exploration
45 Junior Exploration
46 Great Bear Resources Interview
47 Exploring Across Canada
48 O3 Mining Interview
49 Purepoint Uranium Group Interview
50 ALX Resources Interview
51 Industry Thoughts: Gold Juniors Have Their Say
52 Gold Juniors Replacing Depleting Resources
53 Moneta Gold Interview
54 Goldshore Resources Interview
55 Galleon Gold Interview
56 Element79 Gold Interview
57 Signature Resources Interview
58 Section 6: ESG and the Battery Materials Supply Chain
59 Transition Metals on the Rise
60 Conquest Resources Interview
61 Generation Mining Interview
62 Inventus Mining Interview
63 Noble Mineral Exploration Interview
64 The Move to Combat Climate Change Gathers Pace
65 Insights from Onyen Corporation
66 Thorn Associates Interview
67 Leading the Charge
68 Electra Battery Materials Interview
69 Frontier Lithium Interview
70 Industry Thoughts: Entering The Transition Economy
71 The Battery Material Supply Chain
72 ION Energy Interview
73 Clean Air Metals Interview
74 Section 7: Services, Technology and Innovation
75 Engineering, Construction & Consultancies
76 Ausenco Interview
77 Cementation Americas Interview
78 PCL Construction Interview
79 Redpath Mining Interview
80 Technological Advancements & Innovation
81 Industry Thoughts: Canadian Associations
82 EY Interview
83 Maestro Digital Mine Interview
84 Centric Mining Systems Interview
85 Industry Thoughts: OEMs Have Their Say
86 Drone Delivery Canada Interview
87 Sofvie Interview
88 Novamera Interview
89 Industry Thoughts: Paving the Way for ESG Reporting
90 Section 8: Company Profiles
91 Wesdome Company Profile
92 ION Energy Company Profile
93 PearTree Securities Company Profile
94 Ormston List Frawley Company Profile
95 Maestro Digital Mine Company Profile
96 Sofvie Company Profile
97 Credits

Jake Klein, Executive Chairman,

EVOLUTION MINING

"We aim to restore Red Lake to a premier Canadian gold mine producing approximately 350,000 oz/y of low-cost gold."

What are the most recent updates of the Red Lake project?

The Red Lake operation, which we acquired in April 2020 for US$375 million, is located in north-western Ontario. In May 2021, we closed the C$342 million Battle North acquisition, which consolidates our ground position and also provides us with the additional milling capacity to fulfill our strategy for Red Lake. We aim to restore the asset to a premier Canadian gold mine producing approximately 350,000 oz/y of low-cost gold. Historically, Red Lake has had access to bonanza grade ore from the famous “high grade zone” which was 30 to 50 g/t and the mill processed about 600,000 - 700,000 mt/y to produce up to 700,000 oz Au in some years. The future we are planning for Red Lake is a medium grade mine of around 7 g/t, which is still a high grade by today’s standards. Our plan is to mill around 2 million mt/y to produce approximately 350,000 oz of low cost gold.

What are some of the highlights of the Mungari project?

The Mungari operation is our foothold in the Western Australian goldfields, which is another one of the world’s great gold provinces. We recently completed an acquisition at Mungari that has many similarities to the synergies of consolidating Red Lake with Battle North. We own a productive, efficient and modern mill but faced a lower grade future due to mine depletion. However, on the other side of the tenement boundary there are high-grade mines owned by Northern Star with no nearby mill. Therefore, we saw an opportunity for a transaction that made commercial and industrial sense for both parties. The operation consists of the Frog’s Leg mine and some open pit operations. Northern Star’s two operations contained several underground mines. We see the opportunity to combine the operations and operate the mines as a single entity and we think there will be material synergies as we deliver that.

Can you tell us more about your balance sheet structure and funding plan?

An A$400 million or 6% of our market capitalization equity capital raising was recently completed to acquire the assets from Northern Star. We elected to raise capital to support the transaction because we are already investing a lot to build the mining fronts at Red Lake as well as a new A$380 million underground mine at our Cowal operation in New South Wales, Australia. Cowal is a cornerstone asset with a large open pit which we are complementing with a higher grade underground mine to increase its production from 230,000 oz/y to 350,000 oz/y going forward.

Since you have been listed on the ASX, have you considered entering the TSX or a dual listing?

I have previously been involved in a dual-listed company so it was considered. The reporting requirements differ since the TSX uses NI 43-101 for mineral resource and ore reserves reporting while the ASX uses the JORC code. The TSX also requires quarterly financial results, while the ASX requires quarterly reports without a lot of financial detail. These differences create a significant administrative burden so it is not worth it since global investors and funds can access shares on any exchange. It is also rare that you see liquidity in both markets.

What is your ESG strategy moving forward?

We have made the commitment to reduce our carbon footprint by 30% by 2030 and to have net zero emissions by 2050. All our stakeholders are aligned with this goal and believe in its importance. We have a pathway to achieving our targets and buying carbon credits to achieve this goal is our least preferred option. Instead, we expect to reduce our footprint by accessing renewable power, since 70% of our emissions are through energy consumption, 50% of which are at the large Cowal open pit operation. Therefore, if renewable energy sources are installed at Cowal this would significantly reduce our emissions. The remaining 30% of our emissions are largely due to diesel, for which the solution is to move to electric-powered or other low carbon mobile equipment and vehicles that can be charged with renewable power. I am confident that in the next five to seven years truck manufacturers will deliver a solution that is commercially and environmentally viable.

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Article: A New Wave of Ontario Gold Mines