Max Resource up 33% on sponsorship news

The Max Resource 30-person exploration camp and bulk testing facilities in Colombia. Source: Max Resource Corp.

[MXR-TSXV; MAXROF-OTC; M1D1-FSE] rallied strongly in active trading Monday February 4 after the company said it has signed a sponsorship deal with Star Finance GmbH, a privately-owned communications services provider based in Steinhausen, Switzerland and Cologne, Germany.

Max shares jumped 33% or $0.06 to 24 cents on volume of almost 6.13 million. The 52-week range is 12 cents and 31.5 cents.

Star Finance is owned and operated by Michael Adams, an experienced communications professional with more than 15 years of experience assisting Canadian public companies to investors, primarily in Germany and German-speaking Europe.

Among other services, Star Finance owns and operates two established investment-focused financial websites and provides information about investment opportunities to its audience through an e-mail newsletter, websites and various social media channels in the form of written articles and video content.

The sponsorship agreement provides for the introduction of MAX to Star Finance’s audience and subscribers was well as the distribution of company news releases through Star Finance channels and/or the creation and launch of web-based interviews.

The arrangement will have a 12-month term and a cost of 5,000 EUR per month.

Max is a Canadian exploration company with a focus on exploration of mineral assets in Colombia. Its portfolio includes 100%-ownership of 82 and 50% ownership of seven mineral license applications covering 1,757 km2 in the Choco Department, approximately 110 km southwest of Medellin.

Former operator Choco Pacifico produced 1.5 million ounces of gold and 1.0 million ounces of platinum from the Choco District between 1906 and 1990. This historic production was largely limited to an average depth of 8 metres or less.

Max says its Choco Precious Metals project covers, or is adjacent to much of Choco Pacifico’s historic exploration and production areas.

Max said the emphasis of the company’s exploration program is to both substantiate historic reports of free gold within the hard rock conglomerates underlying the surface gold-bearing mineralization and to determine thicknesses and ultimate lateral extent.

Its exploration program involves bulk sampling the conglomerate (hard rock) mineralization to access scale and continuity of gold grades. Max said it is working to develop a system to analyze the gold contained within the 2,500 kilograms of hard rock collected from five trial pits. The pits are typically 2 metres by 2 metres deep.

Meanwhile, Max said it has identified copper/cobalt occurrences over significant areas on its 100%-owned Gachala Copper Project which covers 13,677 hectares and is located 60 km east of Bogota. It said exploration results are pending.

Star Finance does not hold any direct or indirect interest in Max Resource, the company said in a press release.

The company said these four license applications are contiguous to an area where historic sampling has identified a 25-km strike length of copper enrichment with grades ranging from 0.6% to 13% copper.

Max Resource up 33% on sponsorship news

The Max Resource 30-person exploration camp and bulk testing facilities in Colombia. Source: Max Resource Corp.

[MXR-TSXV; MAXROF-OTC; M1D1-FSE] rallied strongly in active trading Monday February 4 after the company said it has signed a sponsorship deal with Star Finance GmbH, a privately-owned communications services provider based in Steinhausen, Switzerland and Cologne, Germany.

Max shares jumped 33% or $0.06 to 24 cents on volume of almost 6.13 million. The 52-week range is 12 cents and 31.5 cents.

Star Finance is owned and operated by Michael Adams, an experienced communications professional with more than 15 years of experience assisting Canadian public companies to investors, primarily in Germany and German-speaking Europe.

Among other services, Star Finance owns and operates two established investment-focused financial websites and provides information about investment opportunities to its audience through an e-mail newsletter, websites and various social media channels in the form of written articles and video content.

The sponsorship agreement provides for the introduction of MAX to Star Finance’s audience and subscribers was well as the distribution of company news releases through Star Finance channels and/or the creation and launch of web-based interviews.

The arrangement will have a 12-month term and a cost of 5,000 EUR per month.

Max is a Canadian exploration company with a focus on exploration of mineral assets in Colombia. Its portfolio includes 100%-ownership of 82 and 50% ownership of seven mineral license applications covering 1,757 km2 in the Choco Department, approximately 110 km southwest of Medellin.

Former operator Choco Pacifico produced 1.5 million ounces of gold and 1.0 million ounces of platinum from the Choco District between 1906 and 1990. This historic production was largely limited to an average depth of 8 metres or less.

Max says its Choco Precious Metals project covers, or is adjacent to much of Choco Pacifico’s historic exploration and production areas.

Max said the emphasis of the company’s exploration program is to both substantiate historic reports of free gold within the hard rock conglomerates underlying the surface gold-bearing mineralization and to determine thicknesses and ultimate lateral extent.

Its exploration program involves bulk sampling the conglomerate (hard rock) mineralization to access scale and continuity of gold grades. Max said it is working to develop a system to analyze the gold contained within the 2,500 kilograms of hard rock collected from five trial pits. The pits are typically 2 metres by 2 metres deep.

Meanwhile, Max said it has identified copper/cobalt occurrences over significant areas on its 100%-owned Gachala Copper Project which covers 13,677 hectares and is located 60 km east of Bogota. It said exploration results are pending.

Star Finance does not hold any direct or indirect interest in Max Resource, the company said in a press release.

The company said these four license applications are contiguous to an area where historic sampling has identified a 25-km strike length of copper enrichment with grades ranging from 0.6% to 13% copper.

Teck Resources issues Q4 profit warning

Teck’s Fort Hills oil sands project in Alberta. Source: Teck Resources Ltd.

Teck Resources Ltd. [TECK.B-TSX; TECK-NYSE] issued a profit warning Friday saying it expects to report fourth quarter earnings and EBITDA (earnings before interest, tax, depreciation and amortization) to be well below consensus estimates.

Analyst said many of the issues raised appear to be associated with isolated incidents and market conditions during the fourth quarter of 2018.

For example, at the Fort Hills oil sands project in Alberta, Teck expects to report an after-tax loss of $0.15 per share due to the dramatic widening in heavy oil differentials in addition to higher fourth quarter diluent costs.

It is worth noting that the Canadian Crude Index (CCI), often referred to as Western Canadian Select (WCS) has increased significantly since the announcement of oil production curtailments by the Alberta government in early December, 2018.

From US$29.80 per barrel at the beginning of October 2018, the WCS price dropped to a low of US$6.42 per barrel in late November before recovering to end the year at US$24.66, with the index averaging only US$19.35 per barrel during the quarter.

At Teck’s Trail operations in British Columbia, the company expects to report an after tax loss of $0.05 due to some interruptions from third party suppliers, in addition to a small fire in the silver refinery plus ongoing maintenance at one of its lead smelter furnaces.

As well, additional base metals inventory write-downs (none of which are met coal related) resulted in the remaining after-tax adjusted loss of $0.10 per share.

These factors together reduce earnings by $0.30 per share and EBITDA by $195 million.

Teck is a diversified mining company with interests in such key metals as copper, zinc coal.

With an expected mine life in excess of 50 years, The Fort Hills oil sands project in the Athabasca region of Alberta is considered one of Western Canada’s best undeveloped oil sands assets. It is located 90 km north of Fort McMurray.

Teck holds a 21.3% interest in the Fort Hills Energy Ltd. Partnership, which owns Fort Hills.  Total E&P Canada Ltd. holds a 24.6% stake, while the balance of 54.1% is held by Suncor Energy Inc. [SU-TSX], the project operator.

In addition to Fort Hills, the company’s energy division also includes a 100% interest in the Frontier oil sands project, as well as other interests in the Athabasca region. The Frontier Project, which is located 110 km south of Fort Chipewyan in northeastern Alberta, is currently moving through the joint provincial-federal regulatory review process.

On Friday, Teck’s Class B common shares eased 3.16% or $1.01 to $30.99 on volume of 1.34 million. The 52-week range is $23.90 and $39.08.

Teck said it will release its fourth quarter 2018 earnings on February 13, 2019, before markets open.

 

Cornerstone underwhelmed by SolGold proposal

Solgold CEO, Nick Mather

SolGold [SOLG-TSX, LSE] said Thursday it is planning to make an offer to acquire all the outstanding shares of Cornerstone Capital Resources Inc. [CGP-TSX, CTNXF-OTC, GWN-F].

If the offer succeeds, holders of Cornerstone who tender their shares to the offer will receive 0.55 of a SolGold share in exchange for every Cornerstone share tendered, SolGold said.

However, readers of the SolGold press release are advised that the company has yet to launch a formal offer for Cornerstone.

Cornerstone responded by stating that owners of 50% of the company’s outstanding shares will not support the terms of the proposed offer.

“Given that the Canadian takeover rules require the majority of outstanding shares (excluding shares held by SolGold) be tendered to the formal offer before any shares can be taken up, SolGold’s proposed offer, if formalized, is incapable of being completed,’’ Cornerstone said in a release.

“We respect the views of our shareholders and given the underwhelming proposal made by SolGold, we are not surprised in the least that it has been rejected so swiftly by a majority of shareholders even before a formal offer is made,’’ said Cornerstone President and CEO Brooke Macdonald.

Macdonald’s response came as Cornerstone shares jumped 14% or $0.04 to 33 cents on volume of 1.08 million. The shares trade in a 52-week range of 14 cents and 39 cents.

“Cornerstone is open to discussing with SolGold and any other potential bidders any value- enhancing transaction that would garner support for our shareholders,’’ Macdonald said.

SolGold is a copper-gold exploration and development company with assets in Ecuador, Solomon Islands and Australia.

It said a key advantage of any takeover of Cornerstone would be the consolidation of ownership in SolGold’s flagship asset, the Cascabel project in Ecuador.

The Cascabel project is 100% owned by SolGold’s 85% owned Ecuador subsidiary Exploraciones Novomining S.A. The remaining 15% is held by Cornerstone.

Cascabel is a porphyry copper-gold deposit located in the Imbabura province of northwestern Ecuador. It lies just off the main road, a three-hour drive north of Ecuador’s capital city, Quito.

The tenement lies on the margin of the Eocene and Miocene metallogenic belts which are renowned for hosting some of the world’s largest porphyry copper and gold deposits, the like giant La Escondida Copper Mine in Chile, which is the world’s largest producer of copper and hosted within the same age host rocks as Cascabel.

To date, exploration activity has identified 15 potential porphyry centres at Cascabel, at Alpala Central, Alpala Northwest, Alpala Southeast, Hematite Hill, Alpala East, Alpala West, Alpala South, Moran, Trivinio, Carmen, Cristal, Aguinaga, Tandayama-America, and Parambas.

SolGold published a maiden mineral reserve estimate for Alpala in January, 2018. The estimate now stands at 430 million tonnes at 0.8% copper equivalent (at 0.3% copper equivalent cut off) in the indicated category and 650 million tonnes at 0.6% copper equivalent (at 0.3% copper equivalent cut off) in the inferred category.

On Thursday, SolGold shares were unchanged at 62 cents. They currently trade in a 52-week range of 71 cents and 31.5 cents.

PDAC 2019 Convention – the event you cannot afford to miss

Canada’s largest city is set to host another outstanding lineup of speakers, short courses, technical sessions, investment opportunities and unparalleled networking events when the PDAC 2019 Convention—the world’s premier mineral exploration and mining convention—returns to Toronto March 3-6.

The Prospectors & Developers Association of Canada’s (PDAC) annual show—celebrating 87 years—will take place at the Metro Toronto Convention Centre (MTCC).

In 2018, the PDAC Convention attracted more than 25,000 attendees from 135 countries, including analysts, mining executives, geologists, prospectors, investors, students and government officials from all over the world.

“The PDAC Convention is the industry’s most-attended yearly event, leading the way in professional development, networking and educational opportunities,” says PDAC President Glenn Mullan. “This accolade is not coincidental, it is something that we work very hard to achieve each year, and something we are very proud of.”

The Aboriginal Program, Capital Markets Program, Short Courses, Sustainability Program and Technical Program return, along with a Keynote Session that will focus on people under 40 years of age in our industry.

“The PDAC Convention is seen as a temperature gauge for the sector, and participation measures how hot or cold the investor climate might be in the year ahead,” says Mullan. “It is also the best opportunity for junior miners and individual prospectors alike to showcase their latest projects and discoveries, and for students to mingle and find their big break.”

The International Mines Ministers’ Summit (IMMS)—a unique event that brings together Mines Ministers from around the world—returns for the fourth year in 2019. This event is co-hosted with the World Economic Forum and provides an important setting for the global exploration and mining community to share insights and take part in discussions that aim to enhance the positive impacts the industry can provide to communities and regions globally.

“Almost every country in the world is represented at the PDAC Convention each year, including international governments and representatives who oversee mining operations,” says Mullan. “The IMMS is just one of the important platforms PDAC provides for governments to learn from one another and collaborate.”

Some highlights to look forward to at PDAC 2019 Convention include:

  • Awards Gala & After Party: A prestigious event where outstanding achievements in the Canadian and international mineral exploration and mining industry are celebrated.
  • Mineral Outlook Luncheon: Is the mining industry investing enough or are metal shortages inevitable? Julian Kettle, Vice Chairman of Metals and Mining, Wood Mackenzie discusses the possibility of metal shortages due to lack of investment in the mining industry.
  • Student-Industry Networking Luncheon: This reception-style buffet luncheon provides an opportunity to make valuable connections with industry professionals and peers.
  • Trade Show Reception: Network with Trade Show North exhibitors and attendees from international and domestic companies, including organizations promoting technology, products, services and mining jurisdictions.
  • Grand Finale: After four outstanding days at the world’s hottest convention for mineral exploration and mining, it’s time to party at this free event! Enjoy the action and network, while the Dave Murphy Band performs live.

PDAC is the leading voice of the mineral exploration and development community. With over 8,000 members around the world, PDAC’s mission is to promote a globally responsible, vibrant and sustainable minerals industry. As the trusted representative of the sector, PDAC encourages best practices in technical, operational, environmental, safety and social performance.

More information about the #PDAC2019 Convention is available at www.pdac.ca/convention.

Argentina official encouraging foreign mining investment

Mariano Lamothe, Undersecretary of Mining Development of the Mining Policy Secretariat of Argentina.

There is no getting around the fact that Argentina faces a number of economic challenges; however, under President Mauricio Macri, in office since 2015, a number of policies have been put in place to attract foreign investment in the mining sector. This has resulted in Argentina’s mining sector contributing more to the country`s financial well-being and its GDP.

Mining exploration and development in the country on a large scale is fairly recent which means that the country remains under-explored and offers a lot of first-mover potential and, consequently, Argentina is poised to receive increasing contributions to its GDP from the mining industry.

While he was in Vancouver, British Columbia, attending the recent resource investment and exploration conferences, Resource World was able to sit down for an interview with Mariano Lamothe, Undersecretary of Mining Development of the Mining Policy Secretariat of Argentina.

RESOURCE WORLD: Would you say that the Argentina mining industry is healthy and growing?

MARIANO LAMOTHE: Yes, we can see that through the growth of the exploration budgets in the last three years which is up 92%. For example, in 2015, there were 57 mining projects in Argentina. Last year there were 76 projects.

We were the first destination for lithium exploration budgets in the world in 2018. Also, during last year, three mines started production, another three mines were under construction and two of which are expansion projects. Of course, our mining sector is smaller than Chile or Canada but we are on the path to becoming a bigger country as a destination for investment in mining.

We need more investment to develop our potential. In 2018, exploration spending in Argentina was about US $250 million. However, our goal is to reach US $400 million per year, as a minimum, for the development of our full potential for different kinds of mine development.

RW: Before acquiring a mineral property anywhere, explorers like to feel that the government is on their side. Is the Argentina government doing anything to attract mineral explorers?

ML: In Argentina, natural resources belong to the provinces. The federal government has enacted laws that promote investment in mining that establish certain benefits specifically for mining operations and for explorers as well.

In the case of explorers, there are several benefits. First of all, a set of income taxes for capital goods and raw materials. There is a VAT [Value Added Tax] reimbursement and also a double discount for exploration expenditures over income taxes. There is a 3% provincial royalty.

With the provinces, we are working for more transparency to assist explorers and are developing a digital data base called a Cadaster which lists mining properties, who owns them and their stage of development.

RW: Are mineral explorers finding the permitting process reasonable and acceptable?

ML: Different provinces have different permitting timelines. Sometimes it’s not so easy but all the provinces are working hard to improve this situation. We have an auditing system to track how much time it is taking with each file or procedure.

In addition, we recognize the importance of working from the beginning with local communities. The government and the mining community both need to work with local communities because even if all the permits are in hand, there can be local opposition. Since there was not much of a mining industry before 1993, mining is a new idea for many communities which is why it is important to gain the confidence and support of those communities where exploration and mining could take place.

RW: About one-third of the South American Lithium Triangle is in Argentina. What is the potential of finding economic lithium deposits and building mines in Argentina’s salars? (salt lakes – brines)

ML: Not only is there good geological potential, we also have friendly regulations to assist in investing in the region where the salars are located; namely, the Puna region in northwest Argentina. In this region, we are improving the infrastructure – including natural gas pipelines – that will help mine developers. Argentina’s natural gas production is expected to double in the next five years.

Some lithium companies are developing different extraction technologies. These technologies that are moving forward are aimed at achieving better grades or higher qualities of lithium – both hydroxide and carbonate. By 2022, we are expecting to have a production capacity of 290,000 tonnes annually of LCE (Lithium Carbonate Equivalent) which I believe will make us the second largest lithium producer in the world. There are now 14 lithium projects underway in advanced stages and more than 40 other projects in initial stages of exploration.

We have improved railways to the northwest that lead to ports or you can cross to Chile to the Pacific; but we need more investment and we are working on that. With solar irradiation levels that allow solar projects to reach capacity factors of 33%, many companies are developing projects in the region. Moreover, these solar projects connect to the existing SADI (Argentina’s electric interconnection grid) that connects the country with more than 14,000 km of high voltage lines. There even is a high voltage line that crosses the border to Chile.

There is good infrastructure in many places with road access to many exploration properties. Others require four-wheel drive vehicles.

RW: Besides lithium, what are some other metals of interest in Argentina?

ML: SSR Mining and Golden Arrow Resources recently began production at Golden Arrow’s open pit Chinchillas silver mine where ore is processed at SSR’s nearby Pirquitas mill. Barrick Gold operates the Veladero gold-silver mine and Pan American Silver has several exploration and development projects. There are also many ready to build world class copper projects.

RW: Looking into the future, how would you like to see Argentina’s mining industry develop?

ML: We share the same mountain range as the well-developed Chilean mines with Argentina on one side of the range. We also have good geology in the south that Chile doesn’t have. Chile annually exports $50 billion worth of minerals. Right now, Argentina exports less than $4 billion so we have a huge untapped potential.

Essentially, we want to make Argentina a leading global mining destination.

Conference puts focus on gold sector risk, opportunity

By Peter Kennedy

Tragedy in West Africa and gold industry consolidation was the backdrop as the mining conference season kicked off in Vancouver Sunday (January 20, 2018).

It meant there was much to discuss at the 2-day Cambridge International Vancouver Resource Investment Conference (VRIC), which was expected to attract a walkup crowd of roughly 7,000.

As geologist Kirk Woodman was abducted and later killed in Burkina Faso just days before the conference began, it was too soon for anyone to say what the long term repercussions might be for companies with mining operations in that country.

Burkina Faso has proven to be fertile ground for Canadian companies who are aiming to build profitable gold production. They include Teranga Gold Corp. [TGZ-TSX], Endeavour Mining Corp. [EDV-TSX] and Roxgold Inc.

But in recent months, the security situation there has deteriorated rapidly, forcing the government to declare a state of emergency in several northern provinces. That prompted the Canadian government to issue a travel warning to citizens advising them to avoid all non-essential travel to Burkina Faso due to the threat of terrorism especially in areas located near the border with Mali and Niger.

When asked for comment, one Canadian mining official said some areas of Burkina Faso are more risky than others.

But as long as people take the appropriate precautions, they don’t have much to fear, said Trish Moran, head of investor relations with Teranga Gold, which is developing a gold mine in southwest Burkina Faso. She said the Wahgnion Project is not located inside the zones where the state of emergency has been declared.

There was no mention of Woodman’s abduction at any of the sessions that I attended during the first day of VRIC conference. He was working for Progress Minerals Inc. (a privately owned Vancouver company) on a property that is located in the Sahel region near the border with Niger. It is a region of West Africa where Islamist militancy is one the rise.

However, it is being speculated that the Halifax native may have been targeted while buying gold from artisanal miners. Jean Paul Badoum, an official with the West African country’s Ministry of Security, told the Canadian Press that gunmen who kidnapped Woodman appear to have stolen a number of items, including money, cell phones and computers.

Woodman’s death, while highlighting the risks of exploration in some jurisdictions, has drawn attention away from the gold industry consolidation, which has been making headlines in recent weeks.

On January 14, 2018, Goldcorp. [G-TSX; GG-NYSE and Newmont Mining Corp. [NEM-NYSE] said they had agreed to merge in an all-stock deal worth $10 billion. The combined company, called Newmont Goldcorp, will have operations in the Americas, Australia and Ghana, and rank as the largest gold producer globally by some distance.

News of the deal comes after Barrick Gold Corp. [ABX-TSX, NYSE] recently agreed to merge with Randgold Resources Ltd. [GOLD-NASDAQ, LSE] in a $6 billion deal that is expected to give Barrick strength in Africa.

Andrew O’Donnell, CEO of Supercharged Stocks.com said he hoped gold sector mergers would breathe new life into exploration in British Columbia.

He was referring to the fact that NovaGold Resources Inc., [NG-TSX, NYSE American] a partner with Teck Resources Ltd. [TECK.B-TSX, TECK.A-TSX, TECK-NYSE] in the Galore Creek project in northwestern B.C. recently agreed to sell its 50% stake in the project to Newmont Mining.

Galore Creek is a large tonnage, copper-gold-silver resource located approximately 160 kilometres northwest of Stewart.

Teck and Newmont have agreed to a work plan at Galore Creek with the objective of completing an updated prefeasibility study over the next three to four years to improve overall project understanding and economics. Teck will invest approximately $12 million to $20 million (US$10 million-US$15 million) annually to complete this work.

During his VRIC presentation, O’Donnell said glacial abatement in B.C. has produced some brand new discoveries that are currently being explored by companies such as GT Gold Corp. [GTT-TSXV; GTGDF-OTC] and Ascot Resources Ltd. [AOT-TSXV; OTVF-OTCQX]. Back in October, 2018 Casa Minerals Inc. [CASA-TSXV; CASXF-OTC] announced the discovery of a network of polymetallic mineralized veins in the Golden Dragon prospect, which is part of its 100%-owned Pitman property, located 20 kilometres north Terrace, B.C.

The company said a rock chip sample from a two-foot wide vein returned assays of 574.42 g/t gold and 109 g/t silver plus 0.1% copper, 1.56% lead and 0.23% zinc.

The impact of the recent mergers may also be felt in Alaska where Barrick and NovaGold Resources Inc. [NG-TSX, NYSE American] are equal partners at Donlin Creek, a project that is estimated to host a measured and indicated resource of 39 million ounces of gold (2.24 grams per tonne).

That puts it among the world’s highest grade, known open pit gold deposits. NovaGold says Donlin Creek has the potential to be one of the world’s largest gold-producing mines, with estimated production of over one million ounces of gold annually over a 27-year mine life.

NovaGold President Greg Lang said the development timeline for Donlin Creek is now within the owners’ control after key state and Federal permits were secured last year.

AME fostering BC mineral exploration

By Ellsworth Dickson

Thome, President and CEO of AMEBC.

AME (Association for Mineral Exploration) is the leading association for the mineral exploration and development sector in British Columbia. The organization represents BC’s mineral exploration sector and promotes environmentally responsible mineral development with clear policies, events and tools to support its thousands of members.

AME is well-known for its popular annual Roundup in Vancouver where thousands of geoscientists as well as exploration and mining equipment manufacturers gather to update their skills and display their latest offerings.

Resource World magazine recently conducted an interview with Edie Thome, President and CEO of AME.

RESOURCE WORLD: How important is the mining sector to the British Columbia economy?

EDIE THOME: The mining industry is incredibly important for British Columbia and Canada. We are a resource-based economy and I think that the benefit of the mineral exploration and mining industry specifically is the regional spending that happens as we go through these exploration projects.

In 2017, we saw the first increase in exploration spending since 2012. That was an increase of 20% over 2016. That was $246 million spent across the province for supplies and services. So it’s incredibly important for local economies and jobs.

This year, our survey results will be announced for 2018, likely at PDAC but we’ll an early view at Roundup and we expect those numbers to go up. One of the mechanisms that BC explorers like are the tax incentives; the federal government announced recently a five-year security for flow-through credits. The BC government every year traditionally renews both the flow-through and the exploration tax credit. That usually gets announced at budget time. We’ve put forward some recommendations to the government and we hope that those will come to fruition in announcements in the near future. We think that with those incentives and the security of year over year confidence that those tax incentives will help stabilize exploration spending.

RW: How many people are directly and indirectly employed in BC’s exploration and mining sector?

ET: BC’s mining sector directly employs over 30,000 workers and thousands more through indirectly-related employment. In 2017, the sector contributed an estimated $9.9 billion to the BC economy while generating economic spin-offs in local communities throughout BC, including expenditures by suppliers and mine employees.

The mining sector is consistently a top exporter, bringing into the province ‘first dollar’ resources that drive a myriad of different activities – from service sectors to innovation funding to local benefits.

RW: The Venture Exchange bottomed out on December 24 at 528 and is now on a modest rebound. Are you aware of how the stock market difficulties have affected BC junior explorers?  ET: Well, certainly commodity prices and the market are affecting investment into the mining industry in general. The AME has formed together with the province of British Columbia as well as the Tahltan and Nisga’a governments last April to create a pilot program called the BC Regional Mining Alliance. We’ve got four member companies that are also working together in the alliance with us to go out and talk to the investment communities specifically about perceptions that they might have about investing in British Columbia. This is not to promote any individual company but just talking specifically about the confidence that finance communities should have in investing in British Columbia.

RW: Regarding the natural gas pipeline in northern BC, there appears to be uncertainty as to who speaks for Indigenous groups. Is it the hereditary chiefs or the elected chiefs and could this impact the mineral sector?

ET:  Having respect for the various government systems of First Nations and Indigenous groups is critically important. We need to listen and respect those processes. As we work through who has the ability to provide consent or consensus it can be a challenge but it’s a conversation we need to have together on a group by group basis. We need to be respectful of that space and the time required.

It is a conversation that we’re prepared to have and want to engage in and be respectful about understanding that there are a variety of Indigenous government structures.

RW: When I talk to people who are not in the mining industry, they love their IPhone, big screen TV, computers, cars and so on but many seem rather unaware of the importance of minerals in their lives. Do you think that the public in general could be better informed with regards to the importance of BC minerals and resource development?

ET: Yes, absolutely. This is a direction that’s been given by our board and our Communications and Marketing Committee as we created our annual plan this year. We recognize that we need to be really focused and have deep conversations with the public at large on the value of mineral exploration and mining in British Columbia and in Canada.

The responsible structures that we have here should make us proud of the industry, so we’re creating a program here called the Public Outreach and Education Program that’s in development right now. It will be a multi-year program of education and awareness.

There has been a number of groups talking about the value of informing the public but we still don’t seem to be getting the connection of the impact on people’s lives. I think what’s really important in that messaging is that everything that we do and use and the decisions we make have a consequence. It’s important to be informed and understand what we are prepared to trade off to have things that we want and need in our lives that are derived from minerals.

I think you’ll start to see that implemented in the summer this year.

RW: Considering the many places around the world to explore for minerals, would you consider British Columbia an attractive region to explore?

ET: Absolutely!  I think that Canada and British Columbia specifically, has great geology and geography that is prospective for minerals. We also have a centre of excellence here in BC where we’ve got exceptionally talented people as well a great regulatory system and mining code. In ranking for exploration attractiveness, BC always ranks high.

RW: Some of my colleagues say that all the “low hanging fruit” has been picked with regards to mineral discoveries.  What is AME currently doing to foster mineral exploration in British Columbia?

ET: I would argue as to the “low hanging fruit” having all been discovered already. There’s a vast land base that both the BC Geological Survey and Geoscience BC and our members are working on. At Roundup come see the Core Shack and see what people have discovered and talk to the prospectors and geologists.

There’s still a lot of work to be done in BC. Some of the things that AME is doing specifically to encourage exploration in British Columbia include being actively involved in the Mining Job Task Force which submitted its report to Minister of Energy, Mines and Petroleum Michelle Mungall. With that group, which is a collaborative group of vast perspectives from NGOs to educators to labour to First Nations representatives to industry really coming together to say: “How do we work together to address some of the opportunities that we have in the industry?” I’m hoping that report will be public shortly and I think you’ll see some really great actions that could be done to help promote and further exploration in British Columbia.

We talked earlier about the tax incentives. AME has been working on that for over a year trying to expand and increase those tax incentives and make them more predictable year over year and the ability to use them into the future.

In addition, this year, we’ve also done quite a bit of work with our regional exploration groups to try to leverage one another on the communication outreach side of things as well and just getting out into those local communities with the help of those regional groups which I think that’s been beneficial as well.

We also spend part of our time with the minsters responsible for some of the regulatory changes like the Environmental Assessment Act Revitalization and we’re looking forward to some changes there. I think that when we get to implementing the act, it will be beneficial to the industry in reducing the time frame it takes to get through assessment.

Why First Nations would buy the Trans Mountain pipeline

By Peter Kennedy

Proposed Kinder Morgan Trans Mountain twinned pipeline expansion project. Source: Kinder Morgan.

Canadian Prime Minister Justin Trudeau is facing increasing pressure to move faster and more forcefully to complete a new oil pipeline in Canada.

The warning is contained in new public opinion data from the Angus Reid Institute, which has been released as First Nations leaders are meeting this week to discuss a plan that could make them the next owners of the controversial Trans Mountain Pipeline.

Angus Reid says its data shows that six-in-ten Canadians believe the lack of new pipeline capacity constitutes a “crisis”, while half say the Trudeau government has done “too little” to ensure new capacity is built.

The lack of progress is a major concern in Alberta where 96% of residents say restrictions on new pipeline capacity would have a major impact on the province’s economy, Angus Reid said. This is because the lack of new pipeline capacity is forcing a dependency on the U.S. market, and preventing the industry from realizing a higher price for its crude by accessing new markets in Asia.

Alberta Senator Doug Black introduced a bill in February (2018) in a bid to have Ottawa declare that the Trans Mountain pipeline expansion is in Canada’s national interest.

Black has warned that not having access to energy markets is costing Canada billions of dollars and the expansion of the Trans Mountain pipeline system between Edmonton, Alberta and Burnaby, B.C.  is a critical solution to this problem.

Pipelines emerged as a dominant theme on the Canadian political landscape last year after the Federal government agreed to purchase the Trans Mountain expansion project from Kinder Morgan Canada [KML-TSX] for $4.5 billion.

Kinder Morgan shareholders voted unanimously to accept the sale on August 30, 2018, the same day that the Federal Court of Appeal quashed the approval of the $7.4 billion Trans Mountain expansion on the basis that Canada’s efforts to meaningfully consult with Indigenous people fell short.

The court also instructed The National Energy Board to explore the potential environmental impacts of increased marine shipping that would result from the expansion.

The pipelines theme was highlighted again last week when members the Wet’Suwet’en First Nation set up a blockade along the path of TransCanada Corp.’s [TRP-TSX] Coastal GasLink pipeline project.  The move was a bid by hereditary chiefs to stall a pipeline that is a key piece of infrastructure needed for the $40 billion LNG Canada liquefied natural gas project.

The blockade was set up even though Coastal Gaslink has signed agreements with First Nations all along the 670-kilometre route, including the elected chiefs of the Wet’Suwet’en.

The fact that dozens of First Nations leaders are meeting this week to discuss the possibility of buying the Trans Mountain pipeline may have raised some eyebrows. But it is not surprising, given the size of the potential economic benefits.

The original Trans Mountain Pipeline was built in 1953 and continues to operate today. The proposed expansion is essentially a twinning of the existing 1,150-kilometre pipeline between Edmonton, Alberta and Burnaby, British Columbia.

Expected to cost approximately $7.4 billion, it will create a pipeline system with a nominal capacity rising from 300,000 barrels per day to 890,000 barrels per day.

During construction, the equivalent of 15,000 people will be working on the pipeline expansion, said Kinder Morgan, adding that the expansion will create the equivalent of 37,000 direct, indirect and indirect jobs during operation.

Kinder Morgan has said the combined impact on government revenue for construction and the first 20 years of expanded operations is $46.7 billion, revenues that the company said can be used for public services such as health care and education – British Columbia receives $5.7 billion, Alberta receives $19.4 billion and the rest of Canada receives $21.6 billion.

First Nations leaders are meeting near Calgary this week to discuss the possibility of buying Trans Mountain.

Explaining why First Nations might want to buy the project, Stephen Buffalo, Chief Executive of the Indian Resource Council (IRC) had this to say during an interview with CBC: “A lot of us are just looking to get out of poverty,” he said. “A lot of the communities in Canada, especially in Western Canada, they still have housing issues, they still have infrastructure issues, they have inadequate schooling, you name it.”

Buffalo went on to tell CBC that Under the Indian Act, what First Nations receive under the comprehensive funding agreement is not enough. “Every year our population is growing and with that funding, it doesn’t really cover everything that is needed.”

Trans Mountain, he said, would therefore generate much needed income.

Readers should note that the IRC represents 134 First Nations who have oil and gas resources on their land.

Are You a Team Player?

This post Are You a Team Player? appeared first on Daily Reckoning.

I hope you had a wonderful Christmas. And I hope you got the chance to look at that potentially life-changing video… though if you didn’t don’t worry. I made sure to get you some extra time, just click here to take a look before it comes down tonight!

After that, let’s back to the story.

What’s Your Game?

If you didn’t already know, rugby is one of the most physically demanding sports there is, far more challenging than American football. Unlike American football, players never stop. Most American football players play less than 10% of the entire game. Rugby players are playing 90% of the game, because a rugby player plays both offense and defense, simultaneously.

American football is like corporate America. Football players are told what to do before every play.

Rugby is a sport for entrepreneurs. Rugby is freestyle, free-flowing, always changing, always dynamic. The rules are clear. Yet there are no set plays. Rugby is fluid and instinctive—no one is ever told what to do.

Single-Phase and Multi-Phase Games

American football is single phase. One play and the play are over. The teams, both offense and defense, huddle, a new play is called and executed and again, once that play is over, the game stops. Players take a break.

Rugby is multi-phase. If a play breaks down, both teams converge on the ball, a “ruck” forms, the ball comes out, and the play continues, and continues, and continues. The team that controls the ball through the most phases, wins the game. Players do not take breaks.

Advancing the Ball

American football is a game of advancing the ball by running forward, by forward passes, or by kicking the ball forward when the team is out of downs for failing to advance the ball 10 yards.

In rugby, a rugby player advances the ball by passing the ball backwards. This means the ball is often passed “in the blind.” This means all rugby players must be running in support and close by, following the player with the ball—just in case the player with the ball needs help. I’ll repeat: Rugby players do not take breaks.

American football players do not cheat. They do only as they are told to do.

In American football, only a few players handle the ball. If the play is on the other side of the field, American football players stop and wait for the play to end. They are not helping the player with the ball, especially if that player is on the other side of the field.

Rugby players are always cheating. They are always ready to help a player in need, the player with the ball. That is because all rugby players run, pass, and kick the ball. If a fellow player is on the other side of the field, all players are running in support ready to help a fellow player in need.

American football players are specialists. Most players do not handle the ball. They all have specific jobs and assignments. That is why most American football players are playing less than 10% of the time they are in the game.

Rugby players are generalists. They have to do everything. Rugby players are playing 90% of the game.

Why Rugby Is Not Physical

If rugby is such a physical game, why is it not physical? Most games define players by physical characteristics. For example, the best basketball players are very tall, lean and agile, with great eye-hand coordination. American football players are tall, big, solid, and heavy. Soccer players are generally average in height, thin, quick, nimble, and fast. Jockeys are tiny, light, and strong. A jockey’s team is his horse. That is why there are no 250-pound professional jockeys. Race horses do not like fat jockeys.

Different Sports… Different Strengths

The game of golf and golfers are different. A golfer is does not need a team. A golfer is able to play the game by themselves. Golfers can practice by themselves.

Team players cannot. Team players need a team to practice with and a team to play against. Golf is a game you play with yourself and against yourself.

Rugby players come in all sizes. There are positions for short players, tall players, fat players, fast players and slow players. Physical size is not important.

At the core of all rugby players is the love of the game and the love of their team because, unlike golfers, rugby cannot be played by yourself or against yourself.

Business and Sports

Pictured below is my rich dad’s CASHFLOW Quadrant. It’s also the title of book number two in the Rich Dad Series of books: Rich Dad’s CASHFLOW Quadrant.

Cash Flow Quadrant

E stands for employee.

S stands for self-employed, small business, or specialist such as doctor, lawyer, web programmer, plumber, etc.

B stands for Big Business owner… with 500 employees or more.

I stands for Investor… professional investor or insider investor.

Most people are passive investors, investing in pension plans, savings plans, stocks, bonds, mutual funds, and ETFs. They invest from the outside.

Our educational system teaches students to be E’s and S’s. My poor dad wanted me to get my Masters degree and climb the corporate ladder in the E quadrant. My mom, a registered nurse, wanted me to become a medical doctor in the S quadrant.

My mom and dad saw the game of money like golfers, a game played by themselves and against themselves. They did not cheat. They never asked for help. They saw the world through the lens of the E and S quadrants.

Although he never played rugby, rich dad saw the world of life, business, and investing as a rugby player does. Rich dad was taught by real teachers, professionals from the real world of business. Hence, he saw the world through the B and I quadrants.

When it came to money, poor dad was not a team player. That is why he was poor.

Rich dad was. He had a great team of business professionals. That is why he was rich.

When it comes to life, money, business, and investing, team is important. It’s everything. You can’t reach success alone.

Are you a team player? And who is on your team?

What’s more important than money?

Your team.

If you want to know who is on my team, the Rich Dad book More Important Than Money features sections by each member of my team, including my wife Kim.

Kim is the most important member of my life and my business team.

Make sure any partner you have is worthy of joining your team!

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

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