Prospectors and Developers Association of Canada 5th Fennoscandian Exploration and Mining Conference GLOBAL TRENDS IN MINERAL EXPLORATION Rovaniemi,, Finland December 1, 2005
The Presentation What the is / What we do The global commodity boom Why exploration is important / who does it Global Exploration - where / what / who Exploration Financing Environmental / Social / Cultural Aspects of Exploration - E3
Newfoundland Prospectors at work
World demand for commodities Source: EMJ / BHP
Stainless steel demand Per capita (kg) 25 20 Taipei Korea 15 10 Japan 5 China 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 Thanks to Bob Horne, INCO
World copper consumption (1985-2004) Source: EMJ / Codelco
Electricity Consumption 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 kwh billions Canada Finland China India U.S. Dept. of Energy Int l Energy Annual - 2001
Electricity Consumption Intensity B kwh 18 16 14 12 10 8 6 4 2 0 B kwh/person Canada Finland USA China India U.S. Dept. of Energy Int l Energy Annual - 2001
Voisey s Bay Discovery Hill - 1993
Voisey s Bay - September 2005
Exploration by Region 2005 (US$ mil)
Exploration - Top Ten Countries 2005
Why Canada?
Exploration by Commodity 2005 (US$ mil)
Canada - Discoveries by Commodity REE 1% PGE 1% Ta/Nb 1% Gems 1% Base Metals 21% Gold 39% Diamonds 36%
Capital raised - Canadian stock exchanges Exploration / development projects worldwide (1998-2004) $12,000 $10,000 Junior Senior Total $8,000 $ Millions $6,000 $4,000 $2,000 $- 1998 1999 2000 2001 2002 2003 2004 Year Source: Gamah International Limited
Canadian Diamonds
World Rough Diamond Production by Country 2004 estimate by value (>US$8B) Namibia 5% Australia 5% Other 5% Botswana 23% Canada 14% D.R.Congo 6% Russia 20% South Africa 11% Angola 11%
Diavik Diamond Mine, Lac des Gras
Ekati / Diavik Diamonds
Exploration - Company Type 1997-2005 (US$ mil)
Financings - Base metal exploration worldwide Junior companies (2000-2004) 10,000.00 9,000.00 Gold BM Total 8,000.00 7,000.00 $ Millions 6,000.00 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00-2000 2001 2002 2003 2004e Year Source: Metals Economic Group Notes: converted from USD at exchange rate of 1.46 e =estimated
Junior Company - Gold and Base Metal Financings (2000-2005)
Exploration / development expenditures in Canada Junior vs. Senior companies (1997-2005) $700 70% Juniors 62% $600 Seniors % Juniors 54% 60% $500 47% 50% $ Millions $400 $300 40% 32% 34% 37% 40% 39% 40% 30% % Juniors $200 20% $100 10% $- 1997 1998 1999 2000 2001 2002 2003 2004p 2005si Year 0% Source: Natural Resources Canada Notes: p = preliminary estimates si = spending intentions
Expenditures - Base metal exploration projects worldwide Junior vs. Senior companies (1997-2004) 1,400 Seniors 35% 40% 1,200 Juniors 35% 1,000 27% 26% % Juniors 26% 30% $ Millions 800 600 17% 22% 20% 23% 25% 20% 15% % Juniors 400 10% 200 5% - 1997 1998 1999 2000 2001 2002 2003 2004 Year 0% Source: Metals Economic Group Notes: converted from USD at exchange rate of 1.458
Rambler Ming Zone
TORONTO A Mining Centre Producing Companies 40 Junior Exploration 125 Service Supply Firms 600
$4,169 Canada s dominance in mining financings has continued to increase in 2004 1,791 financings Mining Equity Financings 2004 (US$ Millions) 73 218 Mining companies raised almost three times as much equity capital on TSX than on any other exchange in the world 4 $1,317 $988 $933 8 2 1 1 $303 $232 $201 $56 TSX-TSX Venture ASX LSE-AIM JSE NYSE Nasdaq SWE Amex Source: Gamah International - Dec 04, compiled by TSX Group
TSX-listed companies raise capital to develop mines around the world Europe 27 China 13 TSX listed companies operate 325 producing mines Africa 61 Australia & Indonesia 26 South America 48 Canada 79 24% USA & Mexico 53 Asia 20 76% of operating mines held by TSX listed companies are outside of Canada Source: Gamah Int l / TSX
Investor s Exchange Convention 05
What is it? What is its value? Why is it important? www.e3mining.com
Diavik Diamond Mine Area
Content of E3 Three main areas Exploration Community Engagement Environmental Practices
Exploration diamond drilling
5000 m 50 holes
Exploration Activities Land acquisition Surveys Access roads Exploration camps Stripping and trenching Drilling Check lists Case histories
Site management Environmental Practices Air management Fish and wildlife management Water use and conservation Hazardous material Waste management Soil conservation Reclamation and closure
Community Engagement Guidelines
Arctic Fox in the Barren Lands
Caribou in the Barren Lands
COMMUNITIES OF INTEREST
E3 Brochure in Spanish Produced for mining conference Arequipa, Peru Sept. 2005
Thank you for your attention www.pdac.ca/e3 www.e3mining.com