SNL Metals & Mining - State of the Market Mining and Finance Report

Edition 2, 2014

State of the Market: Mining and Finance ReportExpert review of all aspects of the industry, recent performance and quarterly outlook

Special reports in this editionMining above 60ºNCash Costs for Base Metals MiningRegional Activity

02www.SNL.com/MetalsEdition 2, 2014

Hinde Sight 03

Market for Mining 04

Exploration 07

Assay Share-Price Alert 11

Metals Production Outlook 12

Mergers and Acquisitions 16

Mining Finance 18

Special Reports:

Mining above 60ºN 20

Cash Costs for Base Metals Mining 39

Regional Activity 41

Contents

STATE OF THE MARKET: MINING AND FINANCE REPORTReport is published bySNL Metals & Mining

PRODUCTIONRoxanne Daniel

SNL Metals & Mining7 Birchin LaneLondon, EC3V 9BWTel: +44 (0)20 7398 1825Website: www.SNL.com/Metals

ContactChris HindeDirector, ReportsEmail: [email protected]

Michelle MowdyMarketing ManagerEmail: [email protected]

CONTRIBUTORSÅsa BorssénRovino ChaudharyMasuma FarookiNarelle GardinerChris HindeGlen JonesViktoriya LarssonJanaka Ratanayake

This report is supplied on a confidential basis for the subscriber's use only. The contents must not be disclosed to third parties and it must not be copied in whole or in part without the prior written permission of SNL Metals & Mining. Photocopying and electronic forwarding is prohibited. Copyright 2014 SNL Metals & Mining.


IRON-ORE PRICES* (US$/t)

There is a rush of companies debuting on the world’s stock exchanges. By the end of March, global initial public offerings already exceeded US$40 billion, which is twice the level of the first quarter last year. Thompson Reuters reports that European IPOs have tripled so far this year.

This IPO revival in the general market is a welcome sign of increased risk-taking and of financial markets again functioning efficiently after almost seven years of crisis. However, as the Financial Times warned, most of this activity is from bigger companies, bankers and financiers, rather than from the smaller companies that will provide the economic growth of the future.

A broader worry is that the IPO market does not serve the smallest companies. While volumes are near record highs, the number of IPOs is on a long-term downward trend, which means that the average offering size is rising.

Meanwhile, investment banks’ malaise about the mining sector is worsening amid rising political and regulatory pressure on the financial community to retreat to their core businesses. In the US, the Federal Reserve has questioned whether banks should be allowed to handle physical commodities. In Europe, Basel III requires banks to maintain bigger capital cushions, which can act as a drag on profit in volatile markets, such as commodities.

The single greatest driver, however, is probably the low, and stable, prices for many commodities. The Coalition consultancy estimates that the revenues of the top-ten banks in commodities fell from US$14.1 billion in 2008 to US$4.5 billion last year.

The trickle of financial houses leaving the sector has become a flood. JPMorgan Chase is selling its physical commodities business to Mercuria, the Geneva-based

trading house, for US$3.5 billion. Deutsche Bank, Morgan Stanley, UBS and Royal Bank of Scotland are all scaling back their presence in commodities, and Barclays recently confirmed plans to pull out of commodity trading.

The combination of investment banks falling out of love with commodities, and IPOs not serving the smaller companies, is worrying for junior exploration and mining companies. This is reflected in the lacklustre US$7.0 billion raised in the March quarter, with only US$1.6 billion of this earmarked for explorers.

As we explain on p7 and p18, the data for the December quarter has been updated to reflect late reporting (data for the State of the Market reports is collected in the middle of the month following a calendar quarter). Even on a like-for-like basis, ie taking the apparent December quarter funding when the previous SOTM was published at the end of January (US$6.2 billion, cf the restated US$9.8 billion), there has been no real improvement in the amount raised by mining companies.

The latest available data suggests that the industry’s cash holdings at the end of December (this information is always a quarter in arrears) was over US$108 billion. This compares favourably with the US$66 billion reported in the previous SOTM report for the September quarter (but is down on the revised total of almost US$112 billion).

The industry’s lacklustre funding position, and dull metals prices, are illustrated by the continued decline in exploration drilling and new resources-reserves, as reported on p7-10. The global economy might have turned the financial corner but this is not yet true for the mining sector.

Funding remains a problem for the mining industry, especially for explorers

COPPER PRICES (US$/t)

COAL PRICES* (US$/t)

GOLD PRICES (US$/oz)

Hinde Sight

* Australian thermal coal, (12,000btu/lb, under 1% sulphur, 14% ash,

FOB Newcastle/Port Kembla)

* 62% Fe, Fines, CFR Tianjin

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Market for MiningMetals markets remain dull, but stable, in the face

of a sluggish world economy

The International Monetary Fund predicted recently that the cost of borrowing in the global economy is likely to remain low long after the recovery gathers pace. Research by the IMF showed that there were “no compelling reasons to expect real interest rates will quickly return to the average level of 2% observed during the mid-2000s”.

The forecast that money will remain cheap should encourage borrowers, including governments, to increase their levels of debt, and boost business and infrastructure development. This is encouraging for longer-term metals consumption but the short-term outlook for the mining industry is gloomy.

Metals price forecasts remain centred on the Chinese economy. Unfortunately, data for March showed that first quarter growth declined, although the rate was slightly ahead of expectations. Year-on-year GDP growth in China eased from 7.7% in the December quarter last year to 7.4% in the quarter just ended.

In a recent Market Report, independent analyst Ted Arnold noted that the country’s quarter-on-quarter growth was only 1.4%, the slowest level since the first quarter two years ago. However, March industrial production growth improved from 8.6% year-on-year to 8.8% (although 9.0% had been expected).

The Financial Times reported in April that the main reason for the Chinese slowdown during the first quarter was a slump in fixed asset investment, which has been the biggest driver of the Chinese economy. In the first three months of the year, investment grew at the slowest pace since late 2002. However, Premier Li Keqiang reiterated that his government will not resort to short-term stimulus measures in the face of what he described as temporary fluctuations in growth.

The relative slide was attributed largely to declining real estate investment, and this situation is certain to get worse in the coming months as new housing floor space under construction contracted 27% in the first quarter.

It seems likely that the biggest downside risk for growth will come from property, and analysts warn that the fate of China’s overheated real estate market is absolutely critical to the health of the overall economy. Real estate construction directly accounted for 16% of GDP in 2013, according to estimates from Nomura. At that level, China is approaching a dependence on property last seen in Ireland and Spain before the bursting of their financial bubbles.

The Financial Times noted that many of the industries already suffering from severe overcapacity in China, such as steel, cement and glass, are heavily indebted and reliant on continued rapid growth in property construction for their survival.

Land sales and property-related taxes accounted for 38% of total government revenue in 2013, and heavily indebted local governments have used highly priced land as collateral for the vast majority of their loans. A property crash would not only lead to collapsing growth in the world’s second-largest economy, and largest commodity consumer, but would also have a huge impact on Chinese households, which have an estimated two-thirds of their assets tied up in real estate.

Nevertheless, there is widespread expectation that Chinese growth will pick up during the current quarter thanks to the recovery in exports, accelerated investment approvals and improved fund disbursements. This has already led to a rebound in infrastructure investment.

OTHER ECONOMIESUS monetary policy remains ‘accommodative’ but is becoming less so. This trend is buoyed by economic data for March that has indicated a moderate rebound from the weather-impacted data in January and February. Nevertheless, growth in the first quarter was weak, and GDP seems likely to have grown by only about 1% (the country’s preliminary first quarter GDP estimate is scheduled to be released on April 30).

Second-quarter GDP growth estimates in the US

FIVE-YEAR PRICES

Left scale: Coal (US$/t) Iron ore (62% Fe, Fines, CFR Tianjin; US$/t)Right scale: Copper (US$/t)

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range up to 3.6%, and the chair of the Federal Reserve, Janet Yellen, said in mid-April that the economy was making “very meaningful progress”, adding it was “quite plausible” that the country would be back to near full employment by the end of 2016.

In one of her first big speeches as Fed chair, Ms Yellen cleared up market confusion caused by her March press conference, when she appeared to suggest that interest rates could rise as early as Spring 2015. Instead, she made clear that the timing of a first Fed rate rise depended entirely on progress in raising employment and inflation.

Analysts agree that the US Central Bank will probably only start raising benchmark interest rates, which it has kept near zero since December 2008, when it is satisfied with the health of the national labour market. The Fed is expected to conclude its monthly bond-buying programme later this year, and most economists expect the first interest rate hike will be in the second half of 2015.

Ms Yellen noted that the recovery had continued from 2010 to 2012, despite shocks from the Eurozone and fiscal tightening in the US but only, she said, because the Fed was willing to provide extra stimulus via asset purchases. She argued that was still the case, saying that the Federal Open Market Committee “stands ready to adjust the pace of purchases as warranted should the outlook change materially”.

In the Eurozone, the European Central Bank has so far resisted measures to increase monetary accommodation but is reported to be working on ways to accomplish effective financial easing. The ECB is aware that a further rise in the Euro will be counterproductive to European growth but its mandate is to preserve the value of the Euro and the bank will not want unduly to undermine Europe’s currency.

In Australia, JP Morgan chief economist Stephen Walters says that falling business investment will be a significant drag on the country’s economic growth. He noted “mining companies continue to scale back their spending intentions, albeit more quickly than we had anticipated, while those outside the mining sector are treading water, at best”.

BASE METALS SCENECommodity markets can be categorised as dull, and many higher-cost mines are coming under pressure. In copper, an Australian bank recently concluded that around 10% of Chinese mine production would be unprofitable at prices of under US$6,800/t. However, the same research note argued that the “incoming surplus supports our view that any gains would be capped at close to US$7,000/t”.

Funds and futures traders are reported to be unexcited by the prospect of sluggish copper price movements for the remainder of the year. Most see better opportunities in other metals, particularly nickel and tin, and Mr Arnold reports that many planned to ‘short’ or reduce their activity in copper this year.

Goldman Sachs notes that China has up to US$160 billion of loans that use commodities as collateral but, for the moment, the weak copper price, the growing mined supply and insipid demand are at the forefront of miners’ concerns.

Sentiment is turning increasingly bullish on aluminium. Good technical support exists at around US$1,820/t (basis three months), and a number of funds are reported to be looking to establish long positions when those levels are reached.

The aluminium market is very liquid, and the fundamentals are beginning to improve on the back of production cutbacks and rising demand. An increasing number of analysts are talking about a modest supply deficit market this year, with the hope of breaching the overhead resistance around US$1,900/t.

Nickel continues to be the star of the metals markets, and the metal hit a 14-month high of US$18,000/t in mid-April. The nickel price has risen 29% so far this year thanks to the Indonesian ore export ban, which came into force on January 12.

On the basis of fundamentals, there should be a massive nickel deficit starting from the end of this year. By 2016, analysts expect LME and producer nickel inventories to be lower than in 2006/07, when nickel prices were regularly trading above US$20,000/t.

Zinc continues to be a steady market, with more and more traders looking at US$2,150/t (basis three months) as the next upside target. Good support exists at around US$2,000/t, and the technical funds continue to look for dips on which to establish fresh long positions.

GOLD LOOKS WEAKThe fraught situation in the Ukraine has had little effect on the gold price, which seems to be locked within a tight range around US$1,340/oz (spot London). There is good support existing at US$1,280/ oz, with de mand in Asia remaining price sensitive, but gold prices are widely expected to keep falling through 2015. As evidence, analysts note a normalisation of US monetary policy, and a trend by investors into higher yielding assets.

The GFMS team at Thomson Reuters reported recently that physical demand, which hit record levels last year after prices plummeted in the second quarter, is expected to remain firm. Nevertheless, this will not be enough to offset a continued decline in Western investment. GFMS expects prices to average US$1,225/oz this year, down from an average of US$1,410/oz in 2013 (the first year in which prices had declined in over a decade).

GFMS’s head of research, Rhona O’Connell, warned that the gold price may fall as low as US$1,100 in 2014 if gold is hit by further bouts of liquidation. Ms O’Connell said “We have had a gold market that was characterised from 2009 to 2012 by heavy investment due to financial uncertainty. That has now turned

Market for Miningcontinued


around, and we are in a period where professional investors have better places to put their money as far as rates of return are concerned, and they are not as concerned about risk.”

“It’s likely that, financial tensions aside, if you look at the next two to three years, you could be going into a different kind of mindset where we get back to looking at gold as a commodity, in the sense that it will move into a deficit which will pull prices higher. But that will take a few years.”

Gold prices fell 28% last year as investors sold out of investment products, such as physically backed exchange-traded funds, on expectations that the Federal Reserve would roll back its extraordinary stimulus measures. Those measures had been a key

factor driving gold higher in the wake of the financial crisis, weighing on interest rates (the opportunity cost of holding the metal) while stoking fears of inflation.

GFMS reported that 880t of gold were liquidated from Exchange Traded Funds last year, against inflows of 279t in 2012. This helped offset a rise in physical gold demand to a record 4,957t. Bar investment jumped by one-third to an all-time high of 1,377t last year, while jewellery buying rose 18% to a six-year peak of 2,361t.

Demand was particularly strong in China, which overtook India to become the top consumer of the metal last year. Its gold-jewellery fabrication demand surged 40% to a record 871.9t. The supply of scrap gold fell 22% last year, meanwhile, as lower prices made selling gold less attractive to consumers. Buying of gold by central banks fell 25% to 409t.

Factoring in liquidation from ETFs and a rise in mine production to a record 3,022t, the gold market recorded a net surplus of 277t, GFMS said. Small deficits are likely to be seen in the physical market in 2014 and 2015, Ms O’Connell said, but a continued drift lower in ETF holdings, reflecting a lack of interest from professional investors, will put the market more or less in balance.

GFMS concluded that the gold price will “continue to decline broadly during 2015. It won’t be until you get to 2016 that you will find incredibly strong physical demand, if East Asia keeps growing the way it is, results in the kind of deficit that will make a difference to price.”

Market for Miningcontinued

GOLD DRILLING V GOLD PRICES

Prospects reporting drillingGold price

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Exploration Hot SpotsInternational exploration for metals falls to yet

another all-time low

Global economies are recovering but the improvement is not yet reflected in metals prices or the minerals exploration scene. As the graph on p8 illustrates, drilling activity fell again in the three months to end-March.

Based on the number of prospects reporting drilling results in the quarter just ended (856), exploration is at only 56% of the year-ago level (1,517), which was itself just 62% of the number of prospects reporting drilling in the first quarter of 2012 (2,465).

Within this extremely low total, gold prospects accounted for over 50% of the drilling announcements in the March quarter (432 prospects). This composition has varied within a narrow 45-53% range each quarter for the past few years.

The overall trend remains downward but there are monthly spikes. As the graph on p6 illustrates, gold companies appear to time their drilling press releases according to market conditions (represented here by the gold price). It is also apparent that the majority of drilling announcements are released during the first month of every quarter (see graph p8).

This first-month spike is particularly apparent for gold companies. For the March quarter, almost 47% of the gold-drilling press releases were made during January. This was a similar proportion to the year-ago experience but much higher than the share of under 38% for January announcements in the first quarter of 2012. In the four quarters of 2013, the percentage of gold-drilling announcements made during the first month of each period ranged from 39% to over 48%, with an average of almost 44%. The average in 2012 was in line with chronological expectations at barely 38%.

These cumulative numbers for each quarter (taken from the monthly figures shown in the graph on p8) might include multiple reports of drilling from the same prospect. The quarterly commodity totals (shown in the tables on p8) exclude these multiple reports.

On a monthly basis, there was a spike in January (396 prospects, as discussed above) but drilling announcements in February and March totalled only 232 and 228, respectively.

Reports of gold drilling actually increased on a quarter-on-quarter basis (378 prospects, compared with 354 in the December quarter) but the activity is still sharply lower than the year-ago figure of 696 prospects.

Geographically, the gold-drilling improvement (although it is from an extremely low base) was felt everywhere, apart from North America and Europe. Companies listed on the Australian Stock Exchange showed a particularly improvement (rising to 140 prospects from only 108 in the previous quarter). Companies with their primary listing on the Toronto Stock Exchange and TSX-Venture still account for the majority of the gold-drilling reports (193 prospects in the March quarter) but activity was lower than during the previous quarter (207 prospects).

Reports of copper drilling fell to 128 prospects in the

three months to end-March, compared with 168 in the December quarter and 200 prospects a year ago. The shortfall was spread fairly equally, with most of the activity remaining in Australasia and North America.

RESOURCES UNCOVEREDThe continued decline in drilling activity is reflected in the announcement of new mineral resources and ore reserves (shown in the tables on p9 as contained metal).

Comparison is complicated, however, because of delays in reporting resources and reserves, particularly at year end. The data for the December quarter has been restated to reflect announcements pertaining to that period since the previous issue of SOTM went to press.

Particularly large increases are apparent in the figures for gold resources and reserves. For example, gold resources reported for Canada in the December quarter were given in SOTM, Edition 1, as under 5Moz but have been revised here to almost 16Moz (the gold reserves were little changed). The original figure for new gold resources in North and Central America during the December quarter (as reported by mid-January) was 14Moz. This has now been revised to 78Moz after incorporating late reports.

Similarly, in the SOTM report published at the end of January, there were under 4Moz of new gold reserves announced in Africa for the December quarter. These have now been revised to almost 12Moz.

For new copper reserves, the total for South America was originally reported as under 1Mt for the December quarter but now stands at almost 9Mt.

Such significant revisions are unusual but it is likely, of course, that the resource-reserve totals for the March quarter will be somewhat higher in subsequent issues of SOTM. By comparing the available data at equivalent times (ie examining press releases made up to two weeks after the end of each quarter), it is clear that new resources of gold and silver have fallen again, while resources of copper and zinc are higher than was apparent at the equivalent time three months ago. In the reserves category, there were falls for gold, silver and zinc, but higher totals for copper, despite the decline in drilling for that metal.

Total gold resources announced in the March quarter amounted to 30.7Moz, compared with the original 35.6Moz during the December quarter (ignoring the significantly higher revised numbers for that period). Gold reserves fell from an unrevised 15.7Moz in the December quarter to only 3.1Moz.

Taking the unrevised numbers for the December quarter, resources and reserves of copper for the March quarter were both higher; the former rising to 14.1Mt from 5.3Mt, and the latter to 2.6Mt from an unrevised 1.3Mt in the December quarter.


Exploration Hot Spotscontinued

SILVERMar Q 2014

Dec Q 2013

Mar Q 2013

Canada 10 20 21Australia 16 16 18USA 3 18Mexico 23 22 38Brazil 1

N&C America 33 45 77S. America 17 21 42Europe 1 2Africa 4 2 4Asia 22 9 19Australasia 16 16 18

TSX/TSX-V* 49 62 96ASX* 36 26 35London* 6 4 13

TOTAL 92 94 162* Primary listing of issuing company

ZINCMar Q 2014

Dec Q 2013

Mar Q 2013

Canada 10 11 15Australia 10 7 18USA 2 4Mexico 5 5 8Brazil

N&C America 15 18 27S. America 2 7 6Europe 2 2 4Africa 2 2 1Asia 4 5 6Australasia 10 7 18

TSX/TSX-V* 20 28 34ASX* 14 12 20London* 1 1


COPPERMar Q 2014

Dec Q 2013

Mar Q 2013

Canada 23 30 36Australia 45 53 55USA 3 8 11Mexico 8 1 6Brazil 2 4 4




LEADMar Q 2014

Dec Q 2013

Mar Q 2013

Canada 5 8 9Australia 9 4 13USA 1Mexico 2 5 6Brazil

N&C America 7 13 16S. America 6 4Europe 1 3Africa 2 1Asia 11 6 7Australasia 9 4 13

TSX/TSX-V* 16 21 24ASX* 12 9 15London* 1 1


GOLDMar Q 2014

Dec Q 2013

Mar Q 2013

Canada 90 103 141Australia 80 70 137USA 25 28 50Mexico 23 19 27Brazil 6 6 23




GLOBAL DRILLING ACTIVITY

QUARTERLY DRILLING REPORTS (INDIVIDUAL PROSPECTS)

ACTIVITY MAP (March Quarter; 2014)

Operational Development Exploration

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QUARTERLY REVIEW OF RESOURCES / RESERVES ANNOUNCEMENTSGOLD RESOURCES (‘000oz; contained metal) GOLD RESERVES (‘000oz; contained metal)

Mar Q 2014 Dec Q 2013 Mar Q 2013 Mar Q 2014 Dec Q 2013 Mar Q 2013Canada 14,970 15,706 10,443 Canada 11,359 476Australia 881 10,605 12,679 Australia 681 4,296 2,929USA 1,631 38,009 4,221 USA 3,745Mexico 309 20,181 5,787 Mexico 1,641 19,933Brazil 638 11,585 1,321 Brazil 5,434 236N&C America 16,909 77,936 21,370 N&C America 16,746 20,409S. America 4,703 21,488 10,725 S. America 546 9,688 773Europe 1,732 10,849 14,114 Europe 1,078 292 2,538Africa 5,015 23,010 20,860 Africa 247 11,991 1,580Asia 1,485 8,829 17,090 Asia 553 4,980 1,898Australasia 881 10,977 12,721 Australasia 681 4,296 2,929TOTAL 30,725 153,090 96,880 TOTAL 3,105 47,993 30,127

COPPER RESOURCES (‘000t; contained metal) COPPER RESERVES (‘000t; contained metal)Mar Q 2014 Dec Q 2013 Mar Q 2013 Mar Q 2014 Dec Q 2013 Mar Q 2013

Canada 3,972 2,284 834 Canada 220Australia 23 4,228 2,771 Australia 700 879USA 3,352 13,600 2,786 USA 1,808 682 1,104Mexico 1,403 9 Mexico 1,391 297Brazil 741 94 Brazil 1,201N&C America 7,324 17,493 3,928 N&C America 1,808 2,293 1,401S. America 6,724 11,212 3,800 S. America 433 8,675 189Europe 3,078 35 Europe 213 25Africa 75 3,912 3,634 Africa 145 1,916Asia 23 1,220 8,902 Asia 183 34Australasia 4,228 2,771 Australasia 700 879TOTAL 14,146 41,142 23,068 TOTAL 2,599 13,791 2,503

SILVER RESOURCES (‘000oz; contained metal) SILVER RESERVES (‘000oz; contained metal)Mar Q 2014 Dec Q 2013 Mar Q 2013 Mar Q 2014 Dec Q 2013 Mar Q 2013

Canada 60,991 136,343 32,325 Canada 60,826 3,999Australia 170,733 15,164 Australia 13,818 9,700USA 4,720 157,492 32,335 USA 194,470Mexico 18,240 389,311 350,902 Mexico 39,363 533,087Brazil 6,595 222 BrazilN&C America 83,950 687,455 415,562 N&C America 294,659 537,087S. America 9,184 120,026 44,526 S. America 53,581 232,930 30,839Europe 14,351 59,883 56,214 Europe 9,043 47,397 20,219Africa 3,394 19,039 1,647 Africa 2,644Asia 3,041 183,395 18,342 Asia 27,825 5,385Australasia 170,733 15,164 Australasia 13,818 9,700TOTAL 113,921 1,240,530 551,455 TOTAL 62,624 619,272 603,230

ZINC RESOURCES (‘000t; contained metal) ZINC RESERVES (‘000t; contained metal)Mar Q 2014 Dec Q 2013 Mar Q 2013 Mar Q 2014 Dec Q 2013 Mar Q 2013

Canada 395 703 532 Canada 397Australia 577 Australia 298USA 171 6 USA 1,064Mexico 1,770 903 Mexico 155 1,898Brazil BrazilN&C America 395 2,733 1,440 N&C America 397 1,219 1,898S. America 1,459 140 S. America 73 122Europe 17 625 18 Europe 4 608Africa 94 139 57 Africa 286 89Asia 556 1,018 Asia 21 519Australasia 577 Australasia 298TOTAL 506 5,511 3,250 TOTAL 402 2,206 2,926

Exploration ResultsSummary of the best assay results announced during the past quarter,

and new resources/reserves

The best assays (in terms of grade x intersection) announced during the three months to end-March are shown on p10. Note that this ranking does not take into account important factors such as the depth of the intersection or the project location.

The top-ranked copper assay for the March quarter came from Newcrest Mining Ltd at its 50%-owned Wafi-Golpu project in Papua New Guinea. Hole WR499 intersected an average of 1.44% Cu (and 1.28g/t Au) over 943m at a depth of 966m.

In second place this time (it was ranked first in the December quarter), Reservoir Minerals Inc reported

further excellent results at its high-sulphide epithermal Cukaru Peki deposit in eastern Serbia. Hole FMTC 1338 on the joint-venture project with Freeport-McMoRan Exploration Corp returned 4.81% Cu (and 2.88g/t Au) over 206m at 554m.

The third best copper assay of the quarter was in Ecuador at the Alpha deposit of SolGold plc. The company announced the discovery of 0.61% Cu over 1,346m from only 24m.

Excellent drill intersections continue to be reported at the Duckhead gold project in Brazil. The project makes top billing this time after being ranked second


TOP-RANKED ASSAYS (MARCH QUARTER; GRADE X INTERSECTION)

COPPER COMPANY PROJECT HOLE GRADE (%) INTERSECTION (m) DEPTH (m) PROJECT LOCATION1 Newcrest Mining Ltd Golpu WR499 1.44 943.0 966 60km SW Lae (PNG)2 Reservoir Minerals Inc Cukaru Peki FMTC 1338 4.81 205.6 554 6km SE Bor (Serbia)3 SolGold plc Alpala CSD-13-005 0.61 1,346.0 24 49km NNW Ibarra (Ecuador)4 Seabridge Gold Inc Iron Cap IC-13-052 0.29 857.4 180 69km NNW Stewart (Canada)5 NovaGold Resources Inc Galore Creek (Legacy) GC13-0895 1.50 135.3 304 165km SSW Dease Lake (Canada)6 Great Western Exploration Ltd Spasskaya SPD0012 2.52 78.0 0 60km E Karagandy (Kazakhstan)7 NGEx Resources Inc Josemaria JMDH80 0.44 434.1 144 115km E Vallenar (Argentina)8 OZ Minerals Ltd Carrapateena (Khamsin) DD13KMS014 0.34 557.0 1,036 65km E Woomera (Australia)9 Avanco Resources Ltd Antas North APBD-080 6.80 27.0 158 122km SW Maraba (Brazil)

10 CuDeco Ltd Rocklands (Las Minerale) LMRC266 1.49 121.0 12 15km WNW Cloncurry (Australia)

GOLD COMPANY PROJECT HOLE GRADE (g/t) INTERSECTION (m) DEPTH (m) PROJECT LOCATION1 Beadell Resources Ltd Duckhead (Main lode) FVM382 143.0 29.0 73 125km NW Macapa (Brazil)2 Eagle Hill Exploration Corp Windfall Lake EAG-13-527 416.0 7.8 226 130km SW Chibougamau (Canada)3 Centamin plc Sukari UGRSD0041 162.0 10.0 92 200km ENE Aswan (Egypt)4 Newcrest Mining Ltd Golpu WR499 1.3 943.0 996 60km SW Lae (PNG)5 Crocodile Gold Corp Phoenix UDH0755 122.0 6.8 214 Near Fosterville (Australia)6 SolGold plc Alpala CSD-13-005 0.5 1346.0 24 49km NNW Ibarra (Ecuador)7 Northern Star Resources Ltd Paulsens (Voyager 2) PDU2839 73.2 8.9 54 Pannawonica 106km S (Australia)8 Gold Road Resources Ltd Yamarna (Gruyere) 14GYDD0008 1.2 560.2 16 135km ENE Laverton (Australia)9 Barkerville Gold Mines Ltd Cow Mountain CM11-102 293.0 2.2 77 60km E Quesnel (Canada)

10 Probe Mines Ltd Borden Lake (HG Zone) BL14-573 16.3 39.0 458 155km WSW Timmins (Canada)

LEAD COMPANY PROJECT HOLE GRADE (%) INTERSECTION (m) DEPTH (m) PROJECT LOCATION1 KGL Resources Ltd Marshall-Reward KJCD048 19.60 18.0 287 270km ENE Alice Springs (Australia)2 North River Resources plc Namib (Kempe) NLDDK011 10.50 23.3 2 30km ENE Swakopmund (Namibia)3 Robust Resources Ltd Romang Island (Perak) LWD403 1.57 144.8 57 223km NE Dili (Indonesia)4 New Pacific Metals Corp RZY ZK2402 4.13 35.3 26 155km WNW Yushu (China)5 Red Metal Ltd Maronan MRN13002 6.62 17.5 513 155km ESE Mt Isa (Australia)6 Levon Resources Ltd Cordero C13-257 0.41 276.0 46 37km NNE Hidalgo del Parral (Mexico)7 Precious Metal Resources Ltd Halls Peak (Gibsons) DDH HP 026 2.30 48.0 0 45km SE Armidale (Australia)8 Investigator Resources Ltd Paris (Paris North) PPRC101 2.45 39.0 21 150km WNW Whyalla (Australia)9 Centerra Gold Inc Altan Tsagaan Ovoo #4 ATO-182ADD 0.65 79.5 187 135km ESE Choybalsan (Mongolia)

10 Trevali Mining Corp Stratmat ST-754 7.57 6.5 409 47km SW Bathurst (Canada)

SILVER COMPANY PROJECT HOLE GRADE (g/t) INTERSECTION (m) DEPTH (m) PROJECT LOCATION1 Fortuna Silver Mines Inc San Jose (Trinidad North) SJOM-335 3,511 6.3 419 40km S Oaxaca (Mexico)2 KGL Resources Ltd Marshall-Reward KJCD048 732 18.0 287 270km ENE Alice Springs (Australia)3 Mandalay Resources Corp Yasna DLV13-086 497 26.4 529 110km S Coihaique (Chile)4 New Pacific Metals Corp RZY ZK2402 343 35.3 26 155km WNW Yushu (China)5 Musgrave Minerals Ltd Menninnie Dam (Frakes) MDAC375 990 10.0 43 115km WNW Whyalla (Australia)6 Terramin Australia Ltd Menninnie Dam (Frakes) MDAC375 990 10.0 43 115km WNW Whyalla (Australia)7 Almaden Minerals Ltd Tuligtic-Ixtaca (Main) TU-13-378 74 124.5 21 70km NNE Puebla (Mexico)8 Paramount Gold and Silver Corp San Miguel (Don Ese) DS-13-039 2,295 4.0 368 75km NE Alamos (Mexico)9 Mandalay Resources Corp Fabiola DLV13-086 854 9.1 484 110km S Cohaique (Chile)

10 IMPACT Silver Corp San Juan (Noche Buena) Z13-76 994 5.9 52 100km SW México City (Mexico)

ZINC COMPANY PROJECT HOLE GRADE (%) INTERSECTION (m) DEPTH (m) PROJECT LOCATION1 Precious Metal Resources Ltd Halls Peak (Gibsons) DDH HP 026 7.20 48.0 0 45km SE Armidale (Australia)2 Robust Resources Ltd Romang Island (Perak) LWD403 2.04 144.8 57 223km NE Dili (Indonesia)3 Red Pine Exploration Inc Cayenne/Chili CC13-01 9.36 27.5 11 95km SW Timmins (Canada)4 North River Resources plc Namib (Kempe) NLDDK011 10.00 23.3 2 30km ENE Swakopmund (Namibia)5 Tinka Resources Ltd Ayawilca A14-18 5.93 36.0 372 60km SSW Huánuco (Peru)6 Trevali Mining Corp Stratmat ST-751 7.42 26.8 431 47km SW Bathurst (Canada)7 Levon Resources Ltd Cordero C13-257 0.64 276.0 46 37km NNE Hidalgo (Mexico)8 New Pacific Metals Corp RZY ZK2402 4.66 35.3 26 155km WNW Yushu (China)9 Independence Group NL Bentley (Flying Spur) 13BUDD143 9.70 16.4 503 51km NNW Leonora (Australia)

10 Beaufield Resources Inc Tortigny TO-13-02 8.37 16.0 223 95km NNW Chibougamau (Canada)

Exploration Resultscontinued

in gold assays during the December quarter. Beadell Resources Ltd reported 143g/t Au over 29m from 73m in an infill hole on the Main lode. The deposit is relatively small but Beadell believes there is more gold to be found in the area.

In mid-February, Eagle Hill Exploration Corp reported 416g/t Au over 7.8m at a depth of 226m at the Windfall Lake property in Canada. The intersection extends the high-grade mineralisation along strike and at depth.

At the end of January, Centamin plc announced a 162g/t Au assay over 10.0m at its Sukari gold mine in Egypt. The drilling is part of the company’s Stage 4 underground expansion to lift total production to over 450,000oz/y. The latest intersection is located at a

depth of 92m, 20m below the existing Amun workings. The top-ranked zinc assay (see table below) was at

the Halls Peak property owned by Precious Metal Resources Ltd. In the first of a planned six holes at the former Gibsons mine near Armidale in Australia, DDH HP026 returned 7.2% Zn (plus 1.1% Cu, 2.3% Pb and 58g/t Ag) over 48.0m from surface.

The best silver assay announced during the March quarter was reported by Fortuna Silver Mines Inc following step-out drilling late in 2013 on the Trinidad North discovery, which is contiguous with the San Jose mine in Oaxaca, Mexico. A 6.3m intersection (true width 3.7m) averaged 3,511g/t Ag (plus 15g/t Au) from a depth of 419m.


The top twenty short-term share-price performances (following assay results) during the March quarter are ranked below (as measured by the share price 20 days after the relevant press release). Note that this simplistic ranking takes no account of underlying market conditions (including metals prices) or alternative impacts on the company valuation.

The table below shows a greater range in share-price movements for the top 20 performances (gains of 16-200%) than were reported during the December quarter (20-117%). Three companies saw share price improvements of over 100% in the specified periods, compared with only one during the December quarter.

Transition Metals Corp is a multi-metal exploration company that focuses on the discovery of ore deposits in Canada using, it says, the “project-generator business model”. This involves focusing exclusively on the discovery stage of the mining cycle, and, once an interesting prospect has been identified, bringing in a partner that earns an interest in the property by funding advanced exploration.

In late January, the company announced intersections (including 20m at 3.2g/t combined PGMs) on its Sunday Lake equal joint venture with Impala Platinum Holdings Ltd in Thunder Bay, Ontario. Over the subsequent 20 days the company’s

share price tripled to 30c/share, and has since risen to over 40c.

The share price of Perth-based Parmelia Resources Ltd more than doubled to over 3c/share in the first half of February after it announced the results of Phase 1 drilling at the Mushroom Reef prospect on its Darvii Naruu project in Govi Altai province, western Mongolia. The share price has subsequently retreated to its original valuation.

The Parmelia example illustrates the problematic nature of ranking changes at low share valuations. Another example is the 10c/share price appreciation in the second half of January by ASX-listed Hammer Metals Ltd (formerly Midas Resources Ltd) following the announcement of high-grade copper intersections (including 14m at 2.62% Cu) at the Overlander North and South projects at Mount Isa in Queensland. This 100% equity appreciation has occurred numerous times over the past year, and the company is currently trading in the middle of this range, at 15c/share.

A 70% equity appreciation (to 51c/share) was recorded by ASX-listed Lamboo Resources Ltd during the first half of March following the announcement of “significant flake graphite assays” at its Geumam project in South Korea. The share price has continued to rise, and was recently trading above 80c.

Assay Share-Price AlertBetter-than-expected assay results can have a remarkable short-term

impact on equity values

IMPACT OF DRILLING RESULTS ON SHARE PRICES (March Quarter)

SHARE PRICE (US$)

COMPANY NAME PROPERTY PRESS RELEASE FROM TO# GAIN (%)

Transition Metals Corp Sunday Lake Jan 27 0.100 0.300 200.0

Parmelia Resources Ltd Darvii Naruu Jan 28 0.015 0.032 113.3

Hammer Metals Ltd Overlander Jan 17 0.100 0.200 100.0

Lamboo Resources Ltd Geumam Feb 27 0.300 0.510 70.0

Carlisle Goldfields Ltd Farley Lake Jan 20 0.045 0.075 66.7

Erin Resources Ltd Lingokoto Jan 28 0.008 0.012 50.0

IMX Resources Ltd Nachingwea Feb 24 0.040 0.060 50.0

Resource & Investment NL Peak Hill Jan 9 0.050 0.075 50.0

Columbus Gold Corp Montagne d'Or Feb 26 0.425 0.600 41.2

WCP Resources Ltd Al Hariqah Jan 23 0.030 0.042 40.0

Celsius Coal Ltd Kokkia Jan 22 0.010 0.014 40.0

Musgrave Minerals Ltd Menninnie Dam Jan 28 0.068 0.090 32.4

West African Resources Ltd Tanlouka Feb 7 0.100 0.130 30.0

Desert Mines and Metals Ltd Daehwa Feb 3 0.016 0.020 25.0

East Africa Resources Ltd Mkuju South Feb 7 0.008 0.010 25.0

Investigator Resources Ltd Peterlumbo Jan 29 0.045 0.055 22.2

Estrella Resources Ltd Altair Mar 18 0.120 0.145 20.8

Graphite One Resources Inc Graphite Creek Jan 8 0.120 0.145 20.8

Bauxite Resources Ltd Athena/Dionysus Jan 16 0.115 0.135 17.4

Metals of Africa Ltd Rio Mazoe Feb 2 0.070 0.081 15.7

# Share price movement 20 days after the first assay announcement


Early announcements signal a significant decline in copper and gold production during the quarter to end-March

Metals Production Outlook

By the end of April, production announcements had been made by 144 gold, copper and iron ore mines for the quarter to end-March. The equivalent number of early reports for the December quarter was only 115 mines.

If these early announcements turn out to be representative of all producers for the quarter then there has been a significant reduction in copper and gold production, with iron ore output only slightly lower.

On May 1, as we went to Press, production reports had been received for 55 identifiable gold mines, compared with 49 early-reporting mines in the State of the Market (SOTM) report for the December quarter. These gold mines, which are all listed in the table on p13, reported a combined 6.76Moz in the March quarter, compared with 7.94Moz for the three months to end-December (a decline of almost 15%). This reverses the steadily increasing gold production from early-reporting mines during 2013.

The overall production picture is similar for the copper miners. Early production reports have been received from 59 mines (45 copper mines had reported in time for the last SOTM report). Overall production from those operations that have already announced their March quarter results amounts to 1.35Mt, which is 180,000t (12%) less than the registered output from these same mines during the quarter to end-December.

Like the gold mines, the total production from early-reporting copper mines had increased each quarter last year (starting with only 1.05Mt in the March quarter).

The iron-ore scene during the March quarter was different. Total production by the 30 iron-ore mines that had reported production statistics by the end of April was 165.6Mt for the March quarter; down only 1.12Mt (0.7%) on the December quarter figures from the same mines. The individual performances from all of these early-reporting iron-ore mines are shown in the table on p15.

NOTABLE CHANGESAmongst the 55 gold mines for which March quarter production is already available, only 16 operations (29%) reported higher output. Lower production was reported at all but three of the 12 gold mines in Australasia (see table p13), all but two of the eight in South America, and all 11 of the early-reporting gold mines in Europe saw lower production in the most recent quarter. The production picture was more mixed in Africa.

The greatest physical increases in quarter-on-quarter gold production were reported at Thompson Creek Metals Co’s Mt Milligan mine, Newmont Mining Corp’s 51.4%-owned Yanacocha mine and four of Barrick Gold Corp’s operations.

The ramp-up at the Mt Milligan mine continues to progress, with mine pit grades as expected, metal recoveries in the mill currently above expectations and mill throughput steadily improving. Thompson Creek expects mill throughput to achieve 75-85% of design capacity by end-2014.

Between them, Barrick’s operations at Goldstrike, Bald Mountain, Golden Sunlight and Veladero increased quarter-on-quarter gold production by 56,000oz. This positive contribution was more than offset, however, by reductions in production of 25,000oz at the company’s Ruby Hill mine, of 14,000oz at Pierina and of 61,000oz at Lagunas Norte. The 31% shortfall at the latter operation

OUTPUT ALERTThe tables on the following pages list only those mines that have already announced their production results for the March quarter. This early data for the three commodities covered in this production outlook (gold, copper and iron ore) enables a prompt estimate of the trend for the quarter. However, details of total production, and confirmation of trends, will only be known at a much later date.

+ =


continued


EARLY PRODUCTION ANNOUNCEMENTS: GOLD (oz)

Company Announcement Q4 2013 Q1 2014 Rise/Fall Change (%)AFRICANorth Mara African Barrick Gold plc 60,358 68,639 8,281 14Bonikro Newcrest Mining Ltd 22,657 29,694 7,037 31Golden Pride Resolute Mining Ltd 20,585 792 -19,793 -96Driefontein Sibanye Gold Ltd 162,200 130,900 -31,300 -19Ahafo Newmont Mining Corp 162,000 105,000 -57,000 -35AUSTRALASIANullagine Millennium Minerals Ltd 14,067 18,762 4,695 33DeGrussa Sandfire Resources NL 5,957 10,035 4,078 68Rosemont Regis Resources Ltd 8,259 10,736 2,477 30Broula King Resource Base Ltd 2,736 1,707 -1,029 -38South Kalgoorlie Metals X Ltd 8,844 3,208 -5,636 -64Rosebery MMG Ltd 9,916 2,939 -6,977 -70Mt Rawdon Evolution Mining Ltd 27,710 18,033 -9,677 -35Garden Well Regis Resources Ltd 37,206 27,006 -10,200 -27Plutonic Northern Star Resources Ltd 28,000 7,000 -21,000 -75Kanowna Northern Star Resources Ltd 60,000 39,000 -21,000 -35Macraes OceanaGold Corp 68,419 40,668 -27,751 -41Telfer Newcrest Mining Ltd 156,789 127,489 -29,300 -19EUROPE (Inc Russia)Solcocon Auriant Mining AB 1,125 311 -814 -72Asacha Trans-Siberian Gold plc 8,414 6,057 -2,357 -28Svartliden Dragon Mining Ltd 9,467 7,094 -2,373 -25Tardan Auriant Mining AB 6,173 2,379 -3,794 -61Malomir Petropavlovsk plc 45,300 30,500 -14,800 -33Pokrovskiy Rudnik Petropavlovsk plc 30,800 14,200 -16,600 -54Titimukhta Polyus Gold International Ltd 37,100 17,200 -19,900 -54Olimpiada Polyus Gold International Ltd 197,300 167,000 -30,300 -15Blagodatnoye Polyus Gold International Ltd 111,300 80,600 -30,700 -28Pioneer Petropavlovsk plc 111,500 65,400 -46,100 -41Lenzoloto Polyus Gold International Ltd 51,400 500 -50,900 -99NORTH AMERICAMt Milligan Royal Gold Inc 18,446 39,200 20,754 113Goldstrike Barrick Gold Corp 242,000 262,000 20,000 8Bald Mountain Barrick Gold Corp 14,000 24,000 10,000 71Golden Sunlight Barrick Gold Corp 20,000 30,000 10,000 50Bachelor Lake Metanor Resources Inc 16,833 25,282 8,449 50Round Mountain Kinross Gold Corp 78,000 86,000 8,000 10La Herradura Fresnillo plc 20,664 28,309 7,645 37Holt St Andrew Goldfields Ltd 13,579 17,497 3,918 29Mishi Wesdome Gold Mines Ltd 221 1,000 779 352Pine Cove Anaconda Mining Inc 3,852 2,832 -1,020 -26Elder Abcourt Mines Inc 3,684 1,436 -2,248 -61Hislop St Andrew Goldfields Ltd 5,068 1,710 -3,358 -66Minto Silver Wheaton Corp 9,126 5,128 -3,998 -44Palmarejo/Gudalupe Franco-Nevada Corp 35,486 25,216 -10,270 -29Kensington Coeur Mining Inc 37,404 25,428 -11,976 -32Ruby Hill Barrick Gold Corp 35,000 10,000 -25,000 -71Nevada Newmont Mining Corp 535,000 377,000 -158,000 -30SOUTH AMERICAYanacocha Newmont Mining Corp 185,000 208,000 23,000 12Veladero Barrick Gold Corp 142,000 158,000 16,000 11Torrecillas Minera Gold Ltd 1,023 394 -629 -61Fazenda Brasileiro Yamana Gold Inc 18,270 12,693 -5,577 -31Chapada Yamana Gold Inc 28,223 20,455 -7,768 -28Pierina Barrick Gold Corp 16,000 2,000 -14,000 -88Tucano Beadell Resources Ltd 60,823 32,507 -28,316 -47Lagunas Norte Barrick Gold Corp 195,000 134,000 -61,000 -31SOUTH EAST ASIABan Houayxai PanAust Ltd 32,933 23,356 -9,577 -29Grasberg Freeport-McMoRan Copper & Gold Inc 502,000 209,000 -293,000 -58


continued


reflected lower grades, as anticipated in the mine plan, and the company forecast production this year at 0.57-0.61Moz.

The two largest falls in quarter-on-quarter gold production came at Newmont’s Nevada operations, and at Freeport-McMoRan Copper & Gold Inc’s Grasberg operation in Indonesia.

PT Freeport Indonesia (PT-FI) resumed open-pit mining at its Grasberg operations in mid-2013 in a phased approach. However, in January this year the government published regulations regarding the export of minerals. As a result of the delay in obtaining approvals for 2014 exports, PT-FI implemented changes to its operations to align its concentrate production with PT Smelting’s operating plans.

During the March quarter, PT-FI’s milling rate averaged only 118,000t/day, which is approximately half of normal rates. As a result, the mine’s copper production (table below) also suffered, down 55% to 65,000t.

Newmont’s Nevada operations produced only 377,000oz of gold in the March quarter, compared with 535,000oz in the December quarter.

Significant changes were also reported at Newmont’s Ahafo mine (output down 35% to 105,000oz) and at Polyus Gold International Ltd’s Lenzoloto mine. The latter is a seasonal producer, with output of 51,400oz in the December quarter but only 500oz in the March quarter, and even this gold represents a carry-over of gold-in-progress from sands washed in the December quarter.

As in the previous SOTM reports, only the copper mines where significant* changes have been reported are tabulated below (amounting to 20 mines in the latest quarter).

*Defined as the six mines with the greatest increase in tonnage, the six with the greatest reduction in tonnage, and any operations where there has been a quarter-on-quarter change of more than 25%.

Of the 20 copper mines that reported these ‘significant’ production changes in the March quarter, 12 reported higher production. However, these positive changes in tonnage were not as significant as the negative changes in production. Also, most of the operations that are not tabulated reported a decline in copper production.

Apart from Grasberg, see above, the most significant individual reductions in quarter-on-quarter copper production were reported at Glencore Xstrata plc’s Collahuasi and Antamina mines in Chile and Peru, respectively, and BHP Billiton Ltd’s Escondida mine in Chile. All reported reductions in excess of 20,000t.

Collahuasi’s production increased due to continuing higher grades and recovery from the SAG Mill 3 shutdown in the first quarter last year. Higher grades reflect the current phase of mining and the accelerated ore extraction to maximise productivity. Lower grades are expected later in the year, however, as ore supply increases from the next phase.

Despite the first quarter shortfall, full-year copper production at Antamina is expected to be broadly

EARLY PRODUCTION ANNOUNCEMENTS: COPPER (t)

Company Announcement Q4 2013 Q1 2014 Rise/Fall Change (%) AFRICAKipoi Central Tiger Resources Ltd 8,527 6,157 -2,370 -28ASIASurda India Resources Ltd 473 997 524 111Gedabek Anglo Asian Mining plc 71 141 70 99Damajianshan Brockman Mining Ltd 304 55 -249 -82AUSTRALASIADeGrussa Sandfire Resources NL 15,492 18,098 2,606 17Golden Grove MMG Ltd 6,891 8,834 1,943 28Kanmantoo Hillgrove Resources Ltd 4,306 5,838 1,532 36Savannah Panoramic Resources Ltd 1,186 1,525 339 29Mt Carlton Evolution Mining Ltd 83 364 281 339NORTH AMERICABingham Canyon Rio Tinto Ltd 64,500 69,200 4,700 7Sierrita Freeport-McMoRan Copper & Gold Inc 18,500 22,500 4,000 22Pinto Valley Capstone Mining Corp 14,856 17,322 2,466 17SOUTH AMERICACerro Colorado BHP Billiton Ltd 19,400 22,000 2,600 13El Abra Freeport-McMoRan Copper & Gold Inc 40,000 42,000 2,000 5Zaldivar Barrick Gold Corporation 32,500 24,000 -8,500 -26Alumbrera Glencore Xstrata plc 34,900 26,000 -8,900 -26Escondida BHP Billiton Ltd 291,900 271,300 -20,600 -7Collahuasi Glencore Xstrata plc 141,700 118,900 -22,800 -16Antamina Glencore Xstrata plc 125,600 98,000 -27,600 -22SOUTH EAST ASIAGrasberg Freeport-McMoRan Copper & Gold Inc 144,000 65,500 -78,500 -55


EARLY PRODUCTION ANNOUNCEMENTS: IRON ORE (t)

Company Announcement Q3 2013 Q4 2013 Rise/Fall Change (%) AFRICASishen Kumba Iron Ore Ltd 8,395,000 8,658,000 263,000 3Thabazimbi Kumba Iron Ore Ltd 151,000 157,000 6,000 4Kolomela Kumba Iron Ore Ltd 2,740,000 2,513,000 -227,000 -8AUSTRALASIAChichester Range Fortescue Metals Group Ltd 26,700,000 30,800,000 4,100,000 15Mt Newman BHP Billiton Ltd 16,689,000 18,287,000 1,598,000 10Hope Downs Hancock Prospecting Pty Ltd 9,112,000 9,559,000 447,000 5Roper Bar Western Desert Resources Ltd 62,000 295,000 233,000 376Wodgina Atlas Iron Ltd 1,197,000 1,397,000 200,000 17Tallering Peak Mount Gibson Iron Ltd 571,000 659,000 88,000 15Extension Hill Mount Gibson Iron Ltd 573,000 654,000 81,000 14Karara Gindalbie Metals Ltd 829,000 901,000 72,000 9Koolyanobbing Cliffs Natural Resources Inc 2,723,000 2,790,000 67,000 2Nelson Bay River Shree Minerals Ltd 45,000 83,000 38,000 84Kara Tasmania Mines Ltd 46,415 55,151 8,736 19Abydos Atlas Iron Ltd 687,000 684,000 -3,000 0Eastern Range Rio Tinto Ltd 2,513,000 2,447,000 -66,000 -3Pardoo Atlas Iron Ltd 293,000 202,000 -91,000 -31Spinifex Ridge Moly Mines Ltd 422,000 321,000 -101,000 -24Area C BHP Billiton Ltd 13,392,000 13,273,000 -119,000 -1Goldsworthy BHP Billiton Ltd 504,000 242,000 -262,000 -52Mt Dove Atlas Iron Ltd 599,000 323,000 -276,000 -46Karara (DSO) Gindalbie Metals Ltd 756,000 367,000 -389,000 -51Koolan Island Mount Gibson Iron Ltd 915,000 468,000 -447,000 -49Pannawonica Rio Tinto Ltd 8,661,000 8,168,000 -493,000 -6West Angelas Rio Tinto Ltd 7,635,000 6,564,000 -1,071,000 -14Yandi BHP Billiton Ltd 20,159,000 18,379,000 -1,780,000 -9Hamersley Rio Tinto Ltd 35,868,000 33,898,000 -1,970,000 -5EUROPEDannemora Dannemora Mineral AB 315,000 294,000 -21,000 -7NORTH AMERICACarol Lake Rio Tinto Ltd 3,953,000 3,005,000 -948,000 -24SOUTH AMERICAPonte Verde South American Ferro Metals Ltd 251,000 193,000 -58,000 -23

continued


unchanged from the 2013 financial year, given a decline in copper ore grades in the second half of the year, consistent with the mine plan.

Escondida also remains on track to produce 1.1Mt of copper in the 2014 financial year before increasing to a planned 1.3Mt in the 2015 financial year. Supporting this target, the company reported a 28% increase in the resource at Escondida compared with the mid-2013 estimate.

All three copper mines in North America to have so far reported their production for the March quarter achieved significant increases in output. Rio Tinto Ltd’s Bingham Canyon lifted output 7% (4,700t) to 69,200t, Freeport-McMoRan reported a 22% improvement (4,000t) to 22,500t at its Sierrita mine, and Capstone Mining Corp improved output 17% (2,466t) to 17,322t at the Pinto Valley operation.

Amongst the 30 iron-ore mines for which March-quarter production is already available, 24 are in

Australasia, and 13 reported higher output (11 of these mines being in Australasia and two in Africa).

There were particularly notable changes in production at six operations in Australia. Three mines reported much larger iron-ore output in the March quarter (Chichester Range, Mt Newman and Hope Downs), and three much lower output (Rio Tinto’s West Angelas and Hamersley mines, and BHPB’s Yandi operation).

Fortescue Metals Group Ltd’s Chichester Range operation in the Pilbara was the stand out performer, lifting iron-ore production 15% (4.1Mt) to 30.8Mt. Fortescue also celebrated completion of its group expansion to 155Mt/y with the official opening of the Kings Valley project at the Solomon Hub. All components of the port, rail and the Chichester and Solomon Hub expansions are now fully operational, with significant construction and major contracts complete.


The total value of mergers and acquisitions (M&A) during the first three months of 2014 (as announced by mid-April) rose almost 66% to US$11.87 billion, compared with the revised December quarter figure of US$7.17 billion. This brought the total for the past four quarters to US$38.09 billion, and, as the graph below illustrates, confirms a healthy upward trend in the total value of deals since the middle of 2013.

The number of deals announced, however, slipped to 62 during the March quarter, compared with 76 in the December quarter. Over 56% of these deals were for gold assets, with copper deals accounting for a further 23% of the total number.

By value, the lion’s share of M&A activity announced so far in 2014 has been for copper assets. Copper’s

US$6.60 billion (56%) share of the total was dominated in the March quarter by the outline US$5 billion agreement between Glencore and China Minmetals for the latter to acquire Las Bambas in Peru. This deal contributed to a ten-fold increase between the December and March quarters in M&A activity involving copper assets.

Gold deals accounted for US$3.27 billion (almost 28% of the total) in the March quarter. This was a three-fold increase from the gold deals worth US$1.09 billion in the December quarter.

The gold M&A activity in the quarter just ended included the contested US$2.5 billion bid for Osisko Mining Corp. Two major gold deals that were first announced in December were finalised during the

Mergers and AcquisitionsThere has been a sharp increase in M&A activity, led by deals involving

copper and gold

MINING DEALS (March Q 2014)

Value(US$ million)

Deals(Number)

By Acquirer Country:

China 5,286.7 4

Canada 3,170.6 20

UK 1,332.5 2

Australia 147.4 14

USA 123.8 5

Other 1,807.4 17

By Target Commodity:

Copper 6,601.3 14

Gold 3,271.1 35

Chrome 1,610.0 1

Iron Ore 66.8 2

Other 319.2 10

TOTAL 11,868.4 62

Note: Mining deals exclude energy minerals and construction materials

COPPER, GOLD AND IRON ORE TRANSACTIONSBY VALUE (US$ million)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Copper

GoldIron Ore

MINING M&A (Past Four Quarters)

Number of transactions (right-hand scale)

0

10

20

30

40

50

60

70

80

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q2 2013 Q3 2013 Q4 2013 Q1 2014

Valu

e of

dea

ls (U

S$ m

illio

n)

MINING DEAL VALUES (March Q 2014)

Gold Copper Iron Ore OtherChrome

28%

56%

14%


Mergers and AcquisitionsContinued

LARGEST MINING DEALS (March Q 2014)

Announced Status ObjectMain Metal

Share (%)

Value (US$ million)

Object Country Buyer

Buyer's Country Seller Seller's Country

Feb Pending Las Bambas Copper 100 5,000.0 Peru China Minmetals Corp China Glencore Xstrata plc Switzerland

Jan Pending Osisko Mining Gold 100 2,445.0 Canada Contested Canada n/a

Feb Failed AMCOL International Corp Chrome 100 1,610.0 USA Imerys SA France n/a

Jan Completed Turquoise Hill Resources Copper, Gold 0 1,222.5 Canada Rio Tinto plc UK n/a

Feb Failed Augusta Resource Copper 84 326.0 Canada Hudbay Minerals Inc Canada n/a

Feb Pending Marigold Mine Gold 100 275.0 USA Silver Standard Resources Inc Canada Goldcorp, Barrick Gold Canada

Jan Pending Langer Heinrich Mine Uranium 25 190.0 Namibia China National Nuclear Corp China Paladin Energy Australia

Feb Pending Anglogold Namibia Gold 100 110.0 Namibia QKR Corporation UK Anglogold Ashanti South Africa

March quarter; Asanko Gold’s US$180 million acquisition of PMI Gold, and Primero Mining’s US$210 million takeover of Brigus Gold.

Iron ore M&A activity slumped from the seven deals worth (a revised) US$406.8 million in the December quarter, to just two deals worth US$66.8 million in the March quarter.

In terms of the location of the acquiring companies, China again dominated, accounting for 45% (US$5.29 billion) of the US$11.87 billion M&A total in the March quarter. Canada ranked second, with

its companies contributing deals worth a total of US$3.17 billion (27% of the total).

The two largest deals announced during the March quarter (see table) were for Las Bambas and for Osisko, as mentioned above. However, the mooted deal between Imerys SA and AMCOL, valued at US$1.6 billion, did not go through, and the parties decided to end the sale agreement.

As the table at the bottom of p16 demonstrates, the improvement in overall M&A activity has come from a sharp increase in deals involving copper and gold. The value of deals involving these two metals, plus the third major metal, iron ore, rose four fold between the December and March quarters, reaching some US$9.9 billion (83% of the total), compared with only US$2.1 billion (29% of the total) in the three months to end-December 2013.

Much of the balance of M&A activity during the December quarter was taken up by three large deals. In the aluminium sector, Vale SA sold its 22% Norsk Hydro stake in a deal valued at US$1.82 billion. In phosphate, Mosaic Co paid US$1.40 billion for assets held by CF Industries.

In the diamond sector, shares in Alrosa worth US$1.30 billion (16% of the company) were sold in a Russian public offering. The federal government sold a 7% stake, and now owns 43.9%, with the Yakutia government also selling 7% (diluted its holding to 25%). The company itself sold Treasury shares representing a 2% stake.

Notwithstanding the continued shortage of finance (see p18), acquisition activity looks set to remain strong in the current quarter. However, until funding improves for small and medium-sized companies, much of this likely to take the form of joint ventures and earn-in arrangements.

DEAL VALUE BY BUYER’S COUNTRY (March Q 2014)

Australia Canada China UK OtherUSA

1%

27%

1%

45%

11%

15%


The increased level of merger and acquisition (M&A) activity in the March quarter, as reported on the preceding pages, was achieved in conditions of tight finance. Total funds raised by the mining sector in the three months to end-March fell below US$7.0 billion from a restated US$9.8 billion in the quarter to end-December.

This apparent quarter-on-quarter decline of 29% might not be as worrying as it appears. The March-quarter figure is based on the financing as reported by the middle of April, and the final number will inevitably be higher (the December quarter figure, for example, was revised up from the US$6.2 billion reported by the middle of January).

As in previous quarters, there was a sharp difference between the amounts raised by explorers and by producers. Funds raised by the latter companies fell 31% to under US$5.4 billion from almost US$7.8 billion. However, this absolute amount still compares very favourably with the US$1.6 billion raised by exploration companies (US$2.0 billion in the December quarter). Barely US$1.1 billion was raised during the quarter just ended by companies with a market capitalisation of under US$100 million.

The shortfall in funding was felt most severely by companies whose primary listing is on the Toronto Stock Exchange (TSX), with funding down from US$4.4 billion in the December quarter to US$1.6 billion in the March quarter. Companies listed on the Australian Stock Exchange (ASX) saw funding drop 26% to US$1.2 billion.

Cash holdings (assessed one quarter in arrears) were down slightly overall at the end of December (US$108.1 billion) in comparison with the end-September assessment (a reassessed US$111.8

billion). However, this overall figure disguises the fact that almost all of this cash is held by the large companies/producers.

Exploration companies had cash holdings of only US$7.5 billion at end-December. The overlapping group of 2,890 listed companies on the SNL database with a market capitalisation of under US$100 million (at the end of December) had combined cash holdings of only US$6.5 billion at the end of December. This equates to an average of under US$2.3 million, representing 19% of this group’s average market capitalisation at that time.

Liquidity in the industry is not helped by depressed metals prices, and mining companies have been struggling to generate profits. For example, Barrick Gold reported a loss of US$10 billion for 2013, Newcrest and Vale reported losses in excess of US$5.5 billion, and Kinross Gold and Goldcorp reported losses of around US$3 billion for 2013.

PROPERTY PRICINGThe SNL database distinguishes between ‘corporate’ and single-property transactions, with the former incorporating multiple-property deals and the acquisition of a company and its assets. The table on p19 represents data where the resource/reserve information is available, and the amount paid for these in-ground assets can be segregated from the associated infrastructure.

The table on p16 consolidates all transactions into overall expenditure, separated into commodity categories. This amount will always be significantly higher than the property-only values.

Accordingly, the pricing data in the table below excludes the amount paid for any infrastructure, and

Mining FinanceFunding for the mining sector remained lacklustre in the

first quarter of 2014

FUNDS RAISED

Funds Raised (US$ million) Cash Holdings (US$ million)*

Q1 2014 Q4 2013 Q1 2013 Q4 2013 Q3 2013 Q4 2012

Company Size (US$ million)

<10 196 620 748 2,005 2,412 1,993

10-49 524 588 714 2,589 3,060 4,123

50-100 348 512 686 1,925 2,081 2,014

>100 5,912 8,045 4,404 101,550 104,287 38,286

Primary Exchange

TSX 1,585 4,400 1,628 24,516 25,309 30,288

ASX 1,221 1,640 1,666 29,851 29,935 6,192

London 393 433 637 9,691 9,994 1,925

Other 3,782 3,292 2,621 44,011 46,602 8,010

Company Type

Explorer 1,621 1,985 1,912 7,520 8,030 9,948

Producer 5,361 7,781 4,641 100,549 103,811 36,468

TOTAL RAISED / CASH 6,980 9,765 6,552 108,069 111,841 46,416

* One quarter lag in information


Mining Financecontinued

PROPERTY PRICING (March Quarter)*

GOLD COPPER

Sales Price (US$/oz resources)

Total Sales Value** (US$ million)

Sales Price (US$/t resources)

Total Sales Value** (US$ million)

Q1 2014

Q4 2013

Q1 2013

Q1 2014

Q4 2013

Q1 2013

Q1 2014

Q4 2013

Q1 2013

Q1 2014

Q4 2013

Q1 2013

Canada 9.3 8.6 24.7 11.1 20.5 12.6 178.3 24.9 20.5 5.0

Australia 9.4 7.2 15.8 23.3 11.5 15.0 79.8 10.3

USA 18.8 2.4 27.0 48.4 0.6 25.2 51.9 2.2 28.0 1.2

Argentina 4.6 5.5

Peru 220.1 142.0

N&C America 40.9 24.5 51.8 68.3 140.9 37.8 236.6 24.9 2.2 59.2 5.0 1.2

S. America 220.1 54.5 142.0 4.8 8.2 8.6

Europe 15.6 0.0 10.9 0.0 188.8 20.6

Africa 15.2 79.3 5.6 206.2

Asia 184.8 12.6 44.4 29.5 6.5 78.2

Australasia 94.2 7.2 15.8 27.0 11.5 15.0 79.8 10.3

TOTAL 19.1 17.9 19.2 145.3 541.1 57.6 32.6 7.1 2.2 79.8 102.2 1.2

* Geographical breakdown of properties sold (evaluated in terms of the total amount, and per unit of metal in the ground)**Data excludes infrastructure

also any transactions where the property-only price can not be identified. The data also excludes multi-project and multi-deposit (‘corporate’) transactions.

Applying these rules, the overall price paid for stand-alone gold properties during the March quarter was only US$145 million, compared with US$541 million during the previous quarter. This corresponds with US$19/oz of resources in the ground.

The total sales value of identifiable gold properties increased in Asia and Australasia in the March quarter, compared with the December quarter, but the values fell elsewhere. The gold-sales value in North America halved to US$68 million, with an even more dramatic decline in Africa, and no identifiable gold values being identifiable in either Europe or South America. (Note that this does not mean that there were no gold-asset transactions in these two continents, only that the individual gold resources could not be isolated and valued.)

The asset valuations of these identifiable gold transactions varied from barely US$15/oz for the African deals to almost US$185/oz in Asia.

Identifiable copper-asset transactions were lower in the quarter just ended, falling 20% to US$80 million, most of which came in North and Central America, with no resource values being identifiable in South America, The average value of the resources that could be isolated from infrastructure etc was US$33/t.

INDUSTRY VALUATIONThere has been little change over the past three months in terms of the industry’s capital structure. This remains sharply divided between big and small companies, and between the related categories of producers and explorers.

According to SNL’s database, the 1,957 companies with a market value of less than US$10 million (representing almost 57% of the listed mining companies) had a combined market capitalisation at the end of March of under US$6 billion (an average of just US$3.0 million). In contrast, the 575 listed companies on the database (17% of the total number) that have a market value in excess of US$100 million accounted for a combined market capitalisation of over US$1,808 billion (an average market value of US$3.1 billion).

INTERNATIONAL MINING MARKET

Company Size(US$ million)

NumberCompanies

End-QuarterMarket Cap

(US$ million)

AverageMarket Cap

(US$ million)

<10 1,957 5,795 3.0

10-49 720 16,640 23.1

50-100 198 14,213 71.8

>100 575 1,808,236 3,144.8

TOTAL 3,450 1,844,884 534.7


Special Report: Mining above 60ºNThe area above 60°N contains some of the most prospective terrain

for mining but is underexplored

Over 18% of the Earth’s land area lies above a latitude of 60° north, and this extensive region includes some of the planet’s most attractive geology for mineralisation.

Although the circumference of the world at this latitude is only half that of the equator, the area to the north encompasses all of Finland, Greenland and Iceland, most of Sweden, Norway and Alaska, and vast areas of northern Russia. It also includes a tiny part of the UK, as the Shetland Islands, to the north of Scotland, lie mainly above 60°N.

In Canada, the 60th ‘parallel’ constitutes the mainland boundary between the northern provinces of Yukon, Northwest Territories and Nunavut, and the southerly provinces of British Columbia, Alberta, Saskatchewan and Manitoba. (It should be noted that parts of Nunavut – the islands of Hudson Bay and James Bay – are located south of 60°N, and parts of Quebec and of Newfoundland and Labrador are located to the north.)

Some important cities lie on, or near, a latitude of 60°N (note that each degree of latitude equates to 111km). These cities include Anchorage (61.2°N, 149.9°W) in North America, St Petersburg (59.9°N, 30.3°E) in Russia, and Helsinki (60.2°N, 25.0°E), Stockholm (59.3°N, 18.1°E) and Oslo (59.9°N, 10.8°E) in Finland, Sweden and Norway, respectively.

Mining to the north of this latitude is not without its difficulties. At 60°N the North Pole is only 3,300km away (half the distance of the equator), and the sun is above the horizon for less than six hours at the Winter solstice (although it is above the horizon for nearly 19 hours at the Summer solstice).

Being at the edge of the Northern Temperate Zone, which extends from the Tropic of Cancer (23.5°N), mining becomes progressively more difficult to the north. In particular, there are environmental and operating issues related to working in the Arctic.

ARCTIC MININGThe Arctic comprises the region above the Arctic Circle, which is the southernmost latitude in the northern hemisphere at which the sun can remain continuously above (or below) the horizon for 24 hours (at the solstices in June and December, respectively). The Arctic Circle is not a fixed latitude but is currently 66° 33′N (ie 66.5°N), which is some 720km north of the 60th parallel.

The Arctic Circle passes through eight countries (in order, westward from Greenwich in the UK): Iceland (where it passes through the small offshore island of Grímsey), Denmark (Greenland), Canada, the US (Alaska), Russia, Finland, Sweden and Norway.

The area north of the Arctic Circle extends for some 20 million km2 (representing about 6% of the Earth’s surface). This area incorporates northern Alaska and northern Canada (Nunavut and the Northwest Territories), most of Greenland, the northern parts of Norway, Sweden and Finland, and northern Russia

(Chukota, Yakutia, Krasnoyarsk, Taymyr and Murmansk). Historic northern operations include the Canadian

mines of Polaris and Lupin in Nunavut, both of which are now closed. Polaris (Cominco’s zinc operation on Little Cornwallis Island) was some 1,000km north of the Arctic Circle at 75.4ºN (there is an unrelated Polaris project at 56.5ºN in British Columbia). The Lupin mine was actually just short of the Arctic proper, at ‘only’ 65.8ºN.

The world’s most northerly mines are three coal operations at 77.9-78.2ºN in Spitsbergen on Norway’s Svalbard Islands (see p22). The most northerly exploration projects are Canada Coal Inc’s exploration at 79.9ºN in Nunavut, and base metals exploration by Ironbark Zinc Ltd and Avannaa Resources Ltd at 80.2-83.0ºN in Greenland’s far north.

SNL’s mining database lists over 100 companies working in the Arctic, operating 55 mines/plants and 329 exploration/development projects, see summary table below. Russia accounts for almost two-thirds of the Arctic mines/plants, with none in Canada despite the country contributing 27% of the world’s documented Arctic exploration projects. There are no Arctic mines in Greenland, and there are neither mines nor projects in Iceland above 66.5°N.

ARCTIC MINING

Country Mines/Plants Projects*

Greenland 0 31

Canada 0 89

USA (Alaska) 3 23

Russia 33 67

Finland 3 36

Sweden 7 58

Norway 9 25

TOTAL 55 329

*Includes categories not included in the tables on p25-36

ARCTIC CIRCLE (66.5°N)


continued

Special Report: Mining above 60ºN

ARCTIC OPERATIONS

Name Latitude Country Province Owner Commodities Location

Most Northerly Advanced-Exploration Projects

Nunavut 79.9 Canada Nunavut Canada Coal Inc Coal Quaanaaq, 430km NW

Havik 76.3 Greenland Qaasuitsup Red Rock Resources plc Gold, Iron ore, Magnetite Qaanaaq, 133km SSE

Ladderbjerg 73.5 Greenland NE National Park Unspecified Company Copper, Lead Kulusuk, 1050km NE

Syradasaiskaya 73.0 Russia Krasnoyarsk MMC Norilsk Nickel OJSC Coal Coking Noril'sk, 460km NNW

Rubjerg Knude 72.6 Greenland NE National Park Unspecified Company Copper Kulusuk, 940km NE

Ukkusissat 71.1 Greenland Qaasuitsup Angel Mining plc (Administration) Zinc Nuuk, 770km N

Repparfjord 70.4 Norway Finnmark Metallica Mining ASA Copper Hammerfest, 30km SE

Tomtor 70.0 Russia Yakutia (Sakha) Unspecified Co Niobium, Rare earth Yakutsk, 1,050km NW

Qeqertaa 69.6 Greenland Qaasuitsup Avannaa Resources Ltd Diamond Illulissat, 50km NE

Grundtjern 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 10km S

Sostervann 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 10km S

Tverrdalen 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 11km S

Bjornfell 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 12km S

Oskarsmalm 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 14km S

Jerntoppen 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 14km S

Severnij 69.6 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Noril'sk, 38km NNE

Glubokij 69.6 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Noril'sk, 32km NNE

Tuktu 69.0 Canada Nunavut Advanced Explorations Inc Copper, Magnetite Raw, Silver Baker Lake, 770km NE

Jennestad 68.8 Norway Nordland Nordic Graphite Ltd Graphite Harstad, 45km W

Yugo-Vostochnaya 68.6 Russia Murmansk MMC Norilsk Nickel OJSC Ilmenite, Titanium, Vanadium Murmansk, 109km NW

Arctic Pre-feasibility/Scoping Studies

Ymer 73.3 Greenland NE National Park NunaMinerals AS Antimony, Gold, Tungsten Ymer Island

Karrat 71.7 Greenland Qaasuitsup Avannaa Resources Ltd Rare earths, Yttrium Nuugaatsiaq, 20km E

Nussir 70.5 Norway Finnmark Nussir ASA Copper, Gold, PGMs Tromsø, 210km ENE

Ulveryggen 70.5 Norway Finnmark Nussir ASA Copper Hammerfest, 32km SE

Bidjovagge 69.3 Norway Finnmark Arctic Gold AB Copper, Gold Kautokeino, 40km NW

Skaergaard 68.2 Greenland Sermersooq Platina Resources Ltd Gold, Palladium, Platinum, PGMs Reyjkavik, 630km NW

Lik 68.2 Alaska Alaska Zazu Metals Corp Lead, Silver, Zinc Fairbanks, 775 km NW

Doris North 68.1 Canada Nunavut TMAC Resources Inc Gold Cambridge Bay, 120km SSW

Madrid 68.1 Canada Nunavut TMAC Resources Inc Gold Bathurst Inlet, 148Km NNE

Hope Bay 68.1 Canada Nunavut TMAC Resources Inc Gold Cambridge Bay, 130km SSW

Viscaria 67.9 Sweden Norrbotten Avalon Minerals Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 5km W

Sokli 67.8 Finland Lappi Laani (Lapland) Yara International ASA Apatite, Phosphate Kovdor, 50km NW

Discovery Zone 67.8 Sweden Norrbotten Hannans Reward Ltd Copper, Gold, Magnetite Kiruna, 8km SSW

Tributary Zone 67.8 Sweden Norrbotten Hannans Reward Ltd Magnetite Kiruna, 8km SSW

Rakkuri 67.8 Sweden Norrbotten Hannans Reward Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 10km S

Boston 67.7 Canada Nunavut TMAC Resources Inc Gold Bathurst Inlet, 115km NE

Nunasvaara 67.7 Sweden Norrbotten Talga Resources Ltd Graphite Kiruna, 50km ESE

Mertainen 67.7 Sweden Norrbotten LKAB Iron ore, Magnetite Kiruna, 30km ESE

Vuruchuaivench 67.5 Russia Murmansk MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Monchegorsk, 80km SE

Workman's Bench 67.5 Alaska Alaska Silverado Gold Mines Ltd Antimony, Gold Wiseman, 7km NW

High Lake 67.4 Canada Nunavut MMG Ltd Base metals, Copper, Gold Bathurst Inlet, 136km WNW

Upper Kobuk 67.2 Alaska Alaska NovaCopper Inc Copper, Gold, Lead, Silver, Zinc College, 460km NW

Arctic 67.2 Alaska Alaska NovaCopper Inc Copper, Gold, Lead, Silver, Zinc Fairbanks, 460km NW

Usinsk 3 67.1 Russia Komi Novolipetsk Steel OJSC Coal, Coal Vorkuta

Ulu 66.9 Canada Nunavut Elgin Mining Inc Gold Cambridge Bay, 340km SW

Three Bluffs 66.6 Canada Nunavut North Country Gold Corp Diamonds, Gold, Silver Baker Lake, 330km NE

Committee Bay 66.6 Canada Nunavut North Country Gold Corp Diamonds, Emerald, Gold, Silver Baker Lake, 290km NNE

White Mountain 66.5 Greenland Qeqqata Hudson Resources Inc Alumina, Anorthosite Saqqarliit, 39km SSE

Sarfartoq 66.5 Greenland Qeqqata Hudson Resources Inc Cerium, Diamond, Rare earths Nuuk, 250km N


Special Report: Mining above 60ºNcontinued

ARCTIC OPERATIONS


Arctic Feasibility Studies

Citronen Fjord 83.0 Greenland NE National Park Ironbark Zinc Ltd Lead, Zinc North Pole, 775km S

Malmbjerg 71.8 Greenland Sermersooq KGHM Polska Miedz SA Molybdenum Scoresbysund, 200km NW

Mary River 71.3 Canada Nunavut Baffinland Iron Mines Corp Iron ore Pond Inlet, 157km SSE

Souker 69.4 Russia Murmansk Kola Mining Corp Copper, Nickel Nikel', 12km ENE

Maslovskoye 69.2 Russia Taymyr MMC Norilsk Nickel OJSC Cobalt, Copper, Gold, PGMs Noril'sk, 14km SSW

Pellapakh 68.5 Russia Murmansk Grangesberg Iron Ore plc Copper, Molybdenum Kola Penninsula

Roche Bay 68.4 Canada Nunavut Advanced Explorations Inc Copper, Iron ore, Magnetite Baker Lake, 740km NE

Kuervitikko 67.6 Finland Lappi Laani (Lapland) Northland Resources SA Copper, Gold, Iron ore, Magnetite Kittila, 40km WSW

Hannukainen 67.6 Finland Lappi Laani (Lapland) Northland Resources SA Copper, Gold, Iron ore, Magnetite Kittila, 41km WSW

Fedorova 67.5 Russia Murmansk Barrick Gold Corp Copper, Gold, Nickel, PGMs Apatity, 90km E

Pellivuoma 67.4 Sweden Norrbotten Northland Resources SA Copper, Gold, Iron ore, Magnetite Pajala, 25km NW

Stora Sahavaara 67.4 Sweden Norrbotten Northland Resources SA Copper, Iron ore, Magnetite Pajala, 19 km NNW

Novogodnee Monto 66.8 Russia Yamalo-Nenets Petropavlovsk plc Gold, Iron ore

Under Construction

Lunckefjell 78.0 Norway Spitsbergen Store Norske AS Coal Longyearbyen, 35km SE

Black Angel 71.7 Greenland Qaasuitsup Angel Mining plc (Administration) Lead, Silver, Zinc Nuuk, 770km N

Skalisty 69.6 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 33km NNE

Kekura Centre 67.0 Russia Chukotka (Chukot) Bazovye Metally CJSC Gold Aliskerovo, 92km SSW

Operating

Store Norske 78.2 Norway Spitsbergen Store Norske AS Coal Longyearbyen

Gruve No7 78.1 Norway Spitsbergen Store Norske AS Coal Longyearbyen, 16km SE

Svea Nord 77.9 Norway Spitsbergen Store Norske AS Coal Longyearbyen, 40km SE

Almazy Anabara 71.0 Russia Yakutia (Sakha) Alrosa OJSC Diamonds Noril'sk, 990km ENE

Elkem Tana Quarry 70.5 Norway Finnmark Elkem Tana AS Quartz Nikel', 135km NNW

Sydvaranger 69.7 Norway Finnmark Northern Iron Ltd Magnetite Kirkenes, 10km S

Bjornevatn 69.7 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 8km S

Fisketind Ost 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 13km S

Kjellmannsasen 69.6 Norway Finnmark Northern Iron Ltd Iron ore, Magnetite Kirkenes, 15km S

Oktyabrsky 69.6 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 28km N

Taimyrsky 69.6 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 29km NNE

Komsomolsky 69.5 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 26km NNE

Talnakh Concentrator 69.5 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel Noril'sk, 24km N

Mayak 69.5 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 23km NNE

Pechenga 69.4 Russia Murmansk MMC Norilsk Nickel OJSC Copper, Gold, Ilmenite, PGMs Murmansk, 110km NW

Kaula-Kotselvaara 69.4 Russia Murmansk MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Nikel, 3km SE

Severny-Gluboky 69.4 Russia Murmansk MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Nikel, 22km E

Nadezhda Smelter 69.3 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel Noril'sk, 9km W

Norilsk Concentrator 69.3 Russia Taymyr MMC Norilsk Nickel OJSC Nickel Noril'sk, 1km S

Taimyr Peninsula 69.3 Russia Taymyr MMC Norilsk Nickel OJSC Cobalt, Copper, Gold, PGMs Norilsk

Medvezhy Ruchey 69.3 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 4km SSW

Zapolyarny 69.3 Russia Taymyr MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 5km SW

Mayskoye 69.0 Russia Chukotka (Chukot) Polymetal International plc Gold, Silver Komsomol'skiy, 54km E

Franzefoss 68.4 Norway Nordland Franzefoss Miljokalk AS Limestone Narvik, 20km W

Olenogorsky 68.2 Russia Murmansk Olkon JSC Iron ore, Magnetite Raw Olenegorsk



MINING PROJECTS ABOVE 60°N

Status Iceland Greenland Canada Alaska Russia Finland Sweden Norway TOTAL

Grass Roots 24 539 42 9 33 35 10 692

Exploration 10 315 47 9 28 34 4 447

Adv Exploration 9 112 21 21 57 59 12 291

Pre-Feas/Scoping 7 33 9 8 14 14 6 91

Feasibility Studies 7 32 2 7 7 7 62

Construction 1 1 7 1 8 1 1 20

Operating 3 1 13 6 70 20 16 16 145

Rehabilitation 1 1

TOTAL 4 59 1,052 128 132 160 165 49 1,749

Active Companies 3 18 281 67 36 42 42 21 478*

*Some companies are active in more than one country

ARCTIC OPERATIONS


Operating (continued)

Olkon 68.2 Russia Murmansk Olkon JSC Iron ore, Magnetite Raw Olenegorsk

Red Dog 68.1 Alaska Alaska Teck Resources Ltd Germanium, Lead, Silver, Zinc Fairbanks, 760km WNW

Kittila 67.9 Finland Agnico-Eagle Mines Ltd Gold Kittila, 40km NE

Monchegorsk Refinery 67.9 Russia Murmansk MMC Norilsk Nickel OJSC Cobalt, Copper, Nickel Monchegorsk

Lovozersky 67.9 Russia Murmansk Lovozersky GOK Beryllium, Cerium, Rare earth Apatity, 65km NE

Kiruna 67.8 Sweden Norrbotten LKAB Iron ore, Magnetite Kiruna, 3km SW

Kevitsa 67.7 Finland First Quantum Minerals Ltd Cobalt, Copper, Gold, PGMs Kemijärvi, 110km N

Oleniy Ruchey 67.7 Russia Murmansk Acron JSC Apatite, Nepheline Syenite Kirovsk, 25km ENE

Kirovsky 67.7 Russia Murmansk Apatit OJSC Bauxite, Nepheline Syenite Kirovsk, 6km NE

Apatit 67.7 Russia Murmansk Apatit OJSC Bauxite, Nepheline Syenite Kirovsk

Gruvberget 67.7 Sweden Norrbotten LKAB Magnetite Svappavaara, near

Pahtavaara 67.6 Finland Lappland Goldminers (Administration) Gold Sodankylä, 25km NNW

Rasvumchorr 67.6 Russia Murmansk Apatit OJSC Bauxite, Nepheline Syenite Kirovsk, 7km NE

Vostochny 67.6 Russia Murmansk Apatit OJSC Bauxite, Nepheline Syenite Kirovsk, 20km ENE

ANBP-3 Concentrator 67.6 Russia Murmansk Apatit OJSC Phosphate Kirovsk

Central 67.6 Russia Murmansk Apatit OJSC Bauxite, Nepheline Syenite Kirovsk, 8km ENE

Dvoinoye 67.6 Russia Chukotka (Chukot) Kinross Gold Corp Gold, Silver Aliskerovo, 76km ESE

ANBP-2 Concentrator 67.6 Russia Murmansk Apatit OJSC Phosphate Apatity

Kovdorsky 67.6 Russia Murmansk EuroChem Mineral Co Apatite, Iron ore, Magnetite Kovdor

Svappavaara 67.6 Sweden Norrbotten LKAB Iron ore, Magnetite Kiruna, 40km SE

Little Squaw Creek 67.6 Alaska Alaska Goldrich NyacAU Placer LLC Gold College, 290km N

Vorkutaugol 67.5 Russia Komi Vorkutaugol JSC Coal Vorkuta

Nolan Creek 67.5 Alaska Alaska Silverado Gold Mines Ltd Antimony, Gold Wiseman, 7km N

Tapulivuoma 67.4 Sweden Norrbotten Northland Resources SA Iron ore, Magnetite Pajala, 25km NNW

Kaunisvaara 67.4 Sweden Norrbotten Northland Resources SA Copper, Gold, Iron ore, Magnetite Pajala, 20km NNW

Kandalaksha Smelter 67.2 Russia Murmansk UC RUSAL plc Aluminium Kandalaksha

Malmberget 67.2 Sweden LKAB Iron ore, Magnetite Malmberget

Aitik 67.1 Sweden Norrbotten Boliden AB Copper, Gold, Molybdenum Gallivare, 15km ESE

Kupol 66.8 Russia Chukotka (Chukot) Kinross Gold Corp Gold, Silver Aliskerovo, 140km SE

Sentachan 66.5 Russia Yakutia (Sakha) GeoProMining Ltd Antimony Yakutsk, 600km NE



LATITUDE BANDSAccording to the SNL database, there are 1,749 exploration and mining projects above 60°N (see table p23), with 60% of these being in Canada. This total excludes operations under care and maintenance (five) and projects whose status is unknown (12) or from which no information has been received for five years.

It is highly likely that there is an under-representation of Russian projects because of the difficulty in capturing early-stage information. The database reports that half of the 145 mines/plants operating above 60°N are in Russia but that the country has just a similar number of exploration projects. In contrast, Canada has only 13 mines/plants but over 1,000 exploration projects.

There are no mines in the world north of the 80th parallel, and only three projects — all of which are in Greenland. As noted above, Ironbark Zink is conducting a feasibility study for a lead-zinc mine at Citronen Fjord (83.0°N), just 775km from the North Pole. Some 270km to the south, exploration is being conducted for base metals in Washington Land (80.2-80.5°N) by Ironbark and by Avannaa Resources.

There is also relatively little work underway between the 70th and 80th parallels:

MINING ACTIVITY 70-80°N*Exp/Dev Mining

Greenland 16 0

Canada 20 0

Russia 2 1

Norway 6 4

Total 44 5* No activity in Iceland, Alaska, Finland or Sweden

The mines in this latitude band comprise Alrosa’s Almazy diamond mine in Russia (71.0°N), and four in Norway. The latter are Elkem Tana AS’s quartz quarry in Finnmark (70.5°N), and three coal mines operated in Spitsbergen by Store Norske AS at 77.9-78.2°N.

Not surprisingly, it is the area between the 60th and 70th parallels that accounts for the great majority of the whole region’s mining activity (see tables p25-36).

There are three operations above 60°N in Iceland but they are all aluminium smelters (owned by Alcoa Ltd, Century Aluminium Co and Rio Tinto Ltd) at 64.0-65.0°N. In Greenland, the only mine above 60°N is the Nalunaq gold mine (at 60.4°N).

There are 13 operations in Canada above 60°N, all in the band below 70°N. These are led by Agnico-Eagle Mines Ltd’s Meadowbank gold mine in Nunavut (at 65.0°N) and Dominion Diamond Corp’s Ekati mine in the Northwest Territories (64.7°N).

Alaska boasts six operations above 60°N, including three in the Arctic; Teck Resources Ltd’s Red Dog multi-metal mine at 68.1°N, Goldrich Mining Co’s Little Squaw Creek gold mine at 67.6°N (operated by NyacAu Placer LLC) and Silverado Gold Mines Ltd’s Nolan Creek mine at 67.5°N.

Russia has an impressive 33 mines/plants in the Arctic (one of which, the Almazy diamond mine, is above 70°N). The country has 69 operations between the 60th and 70th parallels, with the northerly mines including MMC Norilsk Nickel OJSC’s various copper-nickel operations in Taymyr (clustered around 69.6°N) and its copper-gold-nickel operations in Murmansk.

All 20 of Finland’s operations above 60°N are south of 70°N. The country has three operations in the Arctic; Agnico-Eagle Mines Ltd’s Kittila gold operation (67.9°N), First Quantum Minerals Ltd’s Kevitsa cobalt-copper operation (67.7°N) and the Pahtavaara gold mine (67.6°N) owned by Lappland Goldminers.

A similar grouping is true of Sweden’s 16 mines above the 60th parallel, all being south of 70°N, with seven operations in the Arctic. Those above 66.5°N include LKAB’s four magnetite/iron-ore mines at Kiruna (67.8°N), Gruvberget (67.7°N), Svappavaara (67.6°N) and Malmberget (67.2°N). Also in the far north of the country are Northland Resources SA’s Tapulivuoma iron-ore mine and Kaunisvaara multi-metal mine, and Boliden AB’s Aitik copper-silver mine.

Norway has seven operations between 60°N and the Arctic Circle, with nine mines above 66.5°N. Four of the latter are above 70°N; these are three coal mines in Spitsbergen, on the island of Svalbard, at 77.9-78.2°N, and the Elkem Tana quartz quarry at 70.5°N in the country’s Finnmark province. Other northerly operations in Finnmark include four mines owned by Northern Iron Ltd at around 69.6°N.

CORPORATE ACTIVITYThe SNL database records 478 companies as being active north of the 60th parallel, with 281 of these having projects in Canada (see table, p23). Relatively few of these companies are active in more than one country, with only 26 companies being engaged in two countries and just three companies (Agnico-Eagle Mines, Boliden and Kinross Gold) registering work above 60°N in three countries.

Although there is a surprising lack of geographical diversity amongst the northern explorers, many companies have numerous projects within their target country. Amongst the most notable in this regard is Strategic Metals Ltd, which has 110 Canadian projects recorded in the SNL database.

The search in Greenland is led by Nuna Minerals AS, with 12 projects, in Finland by Altona Minerals Ltd (23 projects), and in Norway by Northern Iron Ltd (10) and Drake Resources Ltd (7).

There are a number of competing multiple explorers in Alaska, Russia and Sweden. The latter country includes Hannans Record Ltd (21), Talga Resources Ltd (17), Continental Precious Minerals Inc (10), Botnig Exploration Holdings AB (9) and Boliden AB (7).

Companies active in Alaska include North Fork Resources Ltd (10 projects), Kiska Metals Corp (8) and GoldRich Mining Co (8). The most prominent in Russia are Norilsk Nickel (24), Alrosa (22) and Polymetal International plc (21).



USA (ALASKA)

Name Latitude Owner Commodities Location

Adv. Exploration

Tobin Creek 67.5 Goldrich NyacAU Placer LLC Gold Fairbanks, 300km NNW

Big Creek 67.5 Goldrich NyacAU Placer LLC Gold Fairbanks, 300km NNW

Hammond 67.5 Silverado Gold Mines Ltd Gold Fairbanks, 320km N

Sun 67.1 Andover Mining Corp Copper, Gold, Lead, Silver, Zinc Fairbanks, 425km NW

Bornite 67.1 NovaCopper Inc Cobalt, Copper Fairbanks, 480km NW

Bluff 64.6 Bering Straits Native Corp Gold Nome, 80km E

Illinois Creek 64.3 Plan B Minerals Corp Copper, Gold, Lead, Silver, Zinc Anchorage, 540km NW

Lost South (LMS) 64.2 Corvus Gold Inc Gold, Silver Delta Junction, 20km NNE

Taurus 63.6 Senator Minerals Inc Copper, Gold, Molybdenum Delta Junction, 220km E

Stellar 63.3 Millrock Resources Inc Copper, Gold Anchorage, 280km NE

MAN Alaska 63.2 Pure Nickel Inc Copper, Gold, Nickel, PGMs Delta Junction, 90km SSW

Delta 63.2 Agnico-Eagle Mines Ltd Copper, Gold, Lead, Silver, Zinc Delta Junction, 120km SE

Golden Zone 63.2 Alix Resources Corp Copper, Gold, Silver Fairbanks, 200km SSW

Rainbow Hill 63.2 CanAlaska Uranium Ltd Gold Delta Junction, 130km SW

Caribou Dome 63.1 C-D Development Corp Copper Anchorage, 255km NE

Vinasale Block 62.8 Freegold Ventures Ltd Gold Anchorage, 340km WNW

Whistler 62.0 Kiska Metals Corp Copper, Gold, Silver Anchorage, 165km WNW

Fish Creek 61.7 WestMountain Gold Inc Gold, Silver Anchorage, 220km WNW

Jonesville 61.7 Black Range Minerals Ltd Coal Thermal Anchorage, 75km NE

Shotgun 60.4 TNR Gold Corp Gold Anchorage, 450km W

Pre-feasibility/Scoping

Lik 68.2 Zazu Metals Corp Lead, Silver, Zinc Fairbanks, 775 km NW

Workman's Bench 67.5 Silverado Gold Mines Ltd Antimony, Gold Wiseman, 7km NW

Upper Kobuk 67.2 NovaCopper Inc Copper, Gold, Lead, Silver, Zinc College, 460km NW

Arctic 67.2 NovaCopper Inc Copper, Gold, Lead, Silver, Zinc Fairbanks, 460km NW

Golden Summit 65.1 Freegold Ventures Ltd Gold, Silver, Tungsten Fairbanks, 30km NNE

Gil 65.0 Kinross Gold Corp Gold Fairbanks, 38km NE

Graphite Creek 65.0 Graphite One Resources Inc Graphite Nome, 60km N

Nome 64.6 NovaGold Resources Inc Gold, Gravel Nome, 5km N

Feasibility Study

Livengood 65.5 International Tower Hill Mines Ltd Gold Fairbanks, 80km NNW

Donlin 62.1 Donlin Gold LLC Gold Anchorage, 450km WNW

Construction

Terra 61.8 WestMountain Gold Inc Gold, Silver Anchorage, 210km WNW

Operating

Red Dog 68.1 Teck Resources Ltd Germanium, Lead, Silver, Zinc Fairbanks, 760km WNW

Little Squaw Creek 67.6 Goldrich NyacAU Placer LLC Gold College, 290km N

Nolan Creek 67.5 Silverado Gold Mines Ltd Antimony, Gold Wiseman, 7km N

Fort Knox 65.0 Kinross Gold Corp Gold Fairbanks, 24Km NE

Pogo 64.5 Sumitomo Metal Mining Co Gold Fairbanks, 140km ESE

Usibelli 64.0 Usibelli Coal Mine Inc Coal Fairbanks, 115km SSW



CANADA

Name Province Latitude Owner Commodities Location

Adv. Exploration*

Nunavut Nunavut , Ellesmere Island 79.9 Canada Coal Inc Coal Quaanaaq, 430km NW

Tuktu Nunavut 69.0 Advanced Explorations Inc Copper, Magnetite Raw, Silver Baker Lake, 770km NE

Arcadia Nunavut 67.7 Canada Carbon Inc Gold Bathurst Inlet, 173Km NW

Copper River Nunavut 67.4 GPM Metals Inc Copper, Diamonds, Nickel, PGMs Kugluktuk, 73m SW

Mountain Lake Nunavut 67.3 Canterra Minerals Corp Uranium Cambridge Bay, 520km WSW

Turner Lake Nunavut 67.2 Bama Gold Corp Copper, Gold, Nickel, PGMs Bathurst Inlet, 56km NW

Pistol Lake Nunavut 67.1 Leeward Capital Corp Gold Bathurst Inlet, 39km NW

Qilalugaq Nunavut 66.6 North Arrow Minerals Inc Diamonds Rankin Inlet, 510km NNE

Glacier Lake Northwest Territories 66.1 Alberta Star Development Corp Copper, Gold, Nickel, Silver Port Radium, 0.5km SE

Hood Nunavut 66.1 MMG Ltd Copper, Silver, Zinc Yellowknife, 400km N

Jericho Nunavut 66.0 Shear Diamonds Ltd Diamonds Yellowknife, 420km NE

Contact Lake Northwest Territories 66.0 Alberta Star Development Corp Copper, Gold, Lead, Moly Port Radium, 15km SE

Jericho Regional Nunavut 65.9 Shear Diamonds Ltd Diamonds Yellowknife, 420km N

Lupin Nunavut 65.8 Elgin Mining Inc Gold Yellowknife, 390km NNE

Yava Nunavut 65.6 Savant Explorations Ltd Copper, Gold, Lead, Silver, Zinc Yellowknife, 470km NE

Crest Yukon Territory 65.3 Chevron Corp Iron ore Whitehorse, 520km NNE

Iron Creek Yukon Territory 65.3 Chevron Corp Iron ore Whitehorse, 520km NNE

Blue Caribou Nunavut 65.2 Mega Precious Metals Inc Copper, Gold, Molybdenum, Silver Yellowknife, 500km NE

Gayna River Northwest Territories 65.0 Eagle Plains Resources Ltd Gallium, Lead, Silver, Zinc Keno Hill, 240km ENE

Hart River Yukon Territory 64.6 Panarc Resources Ltd Copper, Gold, Lead, Silver, Zinc Keno Hill, 110km NW

Sissons Schultz Nunavut 64.6 AREVA SA Uranium Iqaluit

Goz Creek Yukon Territory 64.4 Tarsis Resources Ltd Germanium, Lead, Silver, Zinc Mayo, 180km NE

Blende Yukon Territory 64.4 Blind Creek Resources Ltd Lead, Silver, Zinc Dawson City, 233km ENE

Colomac Northwest Territories 64.4 Nighthawk Gold Corp Gold, Silver Yellowknife, 210km N

Andrew Lake Nunavut 64.3 AREVA SA Uranium Hamlet

WO Block Northwest Territories 64.3 Peregrine Diamonds Ltd Diamonds Yellowknife, 300km NE

Cass Northwest Territories 64.3 Pine Cliff Energy Ltd Gold Yellowknife, 200km N

Indin Lake Northwest Territories 64.3 Nighthawk Gold Corp Gold Yellowknife, 210km NW

Chidliak Nunavut 64.3 Peregrine Diamonds Ltd Diamonds Iqaluit, 118km NE

Tiger Yukon Territory 64.2 ATAC Resources Ltd Gold Whitehorse, 390km NNE

Rackla Yukon Territory 64.2 ATAC Resources Ltd Gold, Indium, Lead, Silver Keno Hill, 45km NE

Damoti Lake Northwest Territories 64.2 Nighthawk Gold Corp Gold Yellowknife, 194km NNW

Brewery Creek Yukon Territory 64.1 Americas Bullion Royalty Corp Gold Dawson City, 55km E

Walsh Lake Northwest Territories 64.0 Seabridge Gold Inc Gold Yellowknife, 230km NE

Hopeful Yukon Territory 64.0 Other Parties/Vendors Silver Dawson City, 110km E

Hopeful Yukon Territory 64.0 18526 Yukon Inc Silver, Tin Keno Hill, 100km W

Red Mountain 2 Yukon Territory 64.0 AM Gold Inc Gold Mayo, 60km NW

Keno Yukon Territory 63.9 Independence Gold Corp Copper, Gold, Lead, Silver, Zinc Keno Hill, 3km NW

Red Mountain Yukon Territory 63.9 AM Gold Inc Gold Whitehorse, 360km N

Keno Hill Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Keno Hill, 19km W

Elsa Tailings Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Whitehorse, 360km NNW

Bermingham Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Whitehorse, 350km N

Lone Star Yukon Territory 63.9 Klondike Gold Corp Gold Dawson, 19km SE

Sue-Dianne Northwest Territories 63.8 Fortune Minerals Ltd Copper, Gold, Silver Yellowknife, 190km NW

* Only the advanced exploration projects above 63.6°N are listed; others available on request.



CANADA



Doris North Nunavut 68.1 TMAC Resources Inc Gold Cambridge Bay, 120km SSW

Madrid Nunavut 68.1 TMAC Resources Inc Gold Bathurst Inlet, 148Km NNE

Hope Bay Nunavut 68.1 TMAC Resources Inc Gold Cambridge Bay, 130km SSW

Boston Nunavut 67.7 TMAC Resources Inc Gold Bathurst Inlet, 115km NE

High Lake Nunavut 67.4 MMG Ltd Base metals, Copper, Gold Bathurst Inlet, 136km WNW

Ulu Nunavut 66.9 Elgin Mining Inc Gold Cambridge Bay, 340km SW

Three Bluffs Nunavut 66.6 North Country Gold Corp Diamonds, Gold, Silver Baker Lake, 330km NE

Committee Bay Nunavut 66.6 North Country Gold Corp Diamonds, Emerald, Gold, Silver Baker Lake, 290km NNE

George Lake Nunavut 65.9 Sabina Gold & Silver Corp Gold Bathurst Inlet, 100km SSE

Hackett River Nunavut 65.9 Glencore Xstrata plc Copper, Gold, Lead, Silver, Zinc Bathurst Inlet, 110km S

Back River Nunavut 65.9 Sabina Gold & Silver Corp Base metal, Gold Bathurst Inlet, 112km SSE

Goose Lake Nunavut 65.6 Sabina Gold & Silver Corp Gold Bathurst Inlet, 74km SE

Kiggavik-Sissons Nunavut 64.5 AREVA SA Uranium Baker Lake, 80km WNW

Sissons Nunavut 64.3 AREVA SA Uranium Baker Lake, 80km WNW

Courageous Lake Northwest Territories 64.1 Seabridge Gold Inc Gold Yellowknife, 240km NE

FAT Northwest Territories 64.1 Seabridge Gold Inc Gold Yellowknife, 240km NE

Wolf Yukon Territory 64.0 Victoria Gold Corp Tungsten Mayo, 48km NNE

Dublin Gulch Yukon Territory 64.0 Victoria Gold Corp Antimony, Gold, Silver, Tungsten Keno Hill, 30km WNW

Marg Yukon Territory 64.0 Redtail Metals Corp Copper, Gold, Lead, Silver, Zinc Keno Hill, 35km E

Lucky Queen Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Keno Hill, 3km W

Onek Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Keno Hill, 5km SW

Flame and Moth Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Keno Hill, 8km SW

Tom & Jason Yukon Territory 63.1 HudBay Minerals Inc Lead, Silver, Zinc Whitehorse, 367km NE

Wrigley Northwest Territories 63.1 Mackenzie Mountain Metals Inc Lead, Silver, Zinc Wrigley, 12km W

Meliadine Nunavut 63.0 Agnico-Eagle Mines Ltd Gold Rankin Inlet, 25 km NNW

Ferguson Lake Nunavut 62.9 Unspecified Company Cobalt, Copper, Nickel, PGMs Kivalliq region

Nucleus Yukon Territory 62.3 Northern Freegold Resources Ltd Copper, Gold, Silver Whitehorse, 217km NW

Revenue Yukon Territory 62.3 Northern Freegold Resources Ltd Copper, Gold, Molybdenum, Silver Whitehorse, 220km NNW

Freegold Mountain Yukon Territory 62.3 Northern Freegold Resources Ltd Copper, Gold, Lead, Moly Keno Hill, 200km SSW

Wellgreen Yukon Territory 61.5 Wellgreen Platinum Ltd Cobalt, Copper, Gold, PGMs Whitehorse, 250km WNW

Pine Point Cluster Northwest Territories 60.8 Tamerlane Ventures Inc Lead, Zinc Hay River, 72km E

Northern Dancer Yukon Territory 60.0 Largo Resources Ltd Molybdenum, Tungsten Whitehorse, 210km SE

Feasibility Study

Mary River Nunavut 71.3 Baffinland Iron Mines Corp Iron ore Pond Inlet, 157km SSE

Roche Bay Nunavut 68.4 Advanced Explorations Inc Copper, Iron ore, Magnetite Baker Lake, 740km NE

Izok Corridor Nunavut 65.6 MMG Ltd Copper, Gold, Lead, Silver, Zinc Yellowknife, 360km NNE

Izok Lake Nunavut 65.6 MMG Ltd Copper, Lead, Silver, Zinc Yellowknife, 360km NNE

Eagle Yukon Territory 64.0 Victoria Gold Corp Gold Keno Hill, 30km WNW

NICO Northwest Territories 63.5 Fortune Minerals Ltd Bismuth, Cobalt, Copper, Gold Yellowknife, 172km NW

Gahcho Kue (AK) Northwest Territories 63.4 De Beers SA Diamonds Yellowknife, 280km ENE

MacTung Yukon Territory 63.3 North American Tungsten Corp Ltd Ammonium Sulphate, Copper, Gold Keno Hill, 260km ESE

Nicholas Lake Northwest Territories 63.2 Tyhee Gold Corp Gold, Tungsten Yellowknife, 90km NNE

Yellowknife Northwest Territories 63.2 Tyhee Gold Corp Gold, Silver, Tungsten Yellowknife, 80km NNE

Ormsby Northwest Territories 63.2 Tyhee Gold Corp Gold Yellowknife, 80km NNE

Goodwin Lake Northwest Territories 63.1 Tyhee Gold Corp Gold, Silver Yellowknife, 65km NNE



CANADA


Feasibility Study (continued)

Clan Lake Northwest Territories 62.9 Tyhee Gold Corp Gold Yellowknife, 50km N

Yukon Yukon Territory 62.9 Overland Resources Ltd Lead, Zinc Whitehorse, 280km NNE

Darcy Yukon Territory 62.9 Overland Resources Ltd Zinc Ross River, 105km N

Andrew Yukon Territory 62.9 Overland Resources Ltd Germanium, Lead, Silver, Zinc Ross River, 89km NNW

Darin Yukon Territory 62.9 Overland Resources Ltd Lead, Zinc Ross River, 100km N

Casino Yukon Territory 62.7 Western Copper and Gold Corp Copper, Gold, Molybdenum, Silver Keno Hill, 220km SW

Selwyn Yukon Territory 62.6 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 364km NE

Howards Pass Yukon Territory 62.6 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Tungsten, 85km NW

ANNIV Central Yukon Territory 62.6 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 360km NE

ANNIV East Yukon Territory 62.5 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 360km NE

Don HC Yukon Territory 62.5 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 365km NE

Brodel Yukon Territory 62.5 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 365km NE

XY Central Yukon Territory 62.5 Yunnan Chihong Zinc & Germanium Co Lead, Zinc Whitehorse, 370km NE

Carmacks Yukon Territory 62.3 Copper North Mining Corp Copper, Gold, Silver Keno Hill, 190km SSW

Nechalacho Northwest Territories 62.1 Avalon Rare Metals Inc Beryllium, Cerium, Rare earth Yellowknife, 100 km ESE

Prairie Creek Northwest Territories 61.6 Canadian Zinc Corp Copper, Lead, Silver, Zinc Dease Lake, 450km NE

Mequillon Quebec 61.5 Jilin Jien Nickel Industry Co Cobalt, Copper, Gold, PGMs Kangiqsujuaq, 95km W

Division Mountain Yukon Territory 61.3 Pitchblack Resources Ltd Coal Coking Whitehorse, 85 km NW

Pine Point N204 Northwest Territories 60.9 Tamerlane Ventures Inc Lead, Zinc Yellowknife, 170km SSE

Construction

Indian River Yukon Territory 63.7 Klondike Star Mineral Corp Gold Dawson, 30km SE

Mesamax Quebec 61.6 Jilin Jien Nickel Industry Co Cobalt, Copper, Gold, PGMs Kangiqsujuaq, 68km W

Expo Quebec 61.6 Jilin Jien Nickel Industry Co Cobalt, Copper, Gold, PGMs Kangiqsujuaq, 80km W

Expo Ungava Quebec 61.5 Canadian Royalties Inc Cobalt, Copper, Gold, PGMs Schefferville, 840km NNW

Ivakkak Quebec 61.4 Jilin Jien Nickel Industry Co Cobalt, Copper, Gold, PGMs Kangiqsujuaq, 90km W

Pine Point Northwest Territories 60.9 Tamerlane Ventures Inc Lead, Zinc Yellowknife, 180km S

Pine Point R190 Northwest Territories 60.7 Tamerlane Ventures Inc Lead, Zinc Yellowknife, 200km SSW

Operating

Meadowbank Nunavut 65.0 Agnico-Eagle Mines Ltd Gold, Silver Baker Lake, 77km N

Ekati Northwest Territories 64.7 Dominion Diamond Corp Diamonds Yellowknife, 310km NE

Diavik Northwest Territories 64.5 Diavik Diamond Mines Inc Diamonds Yellowknife, 300km NE

Bellekeno Yukon Territory 63.9 Alexco Resource Corp Silver Whitehorse, 353km N

Eastern Keno Hill Yukon Territory 63.9 Alexco Resource Corp Gold, Lead, Silver, Zinc Keno Hill, 6km SW

Snap Lake Northwest Territories 63.6 De Beers SA Diamonds Yellowknife, 220km NE

Minto Yukon Territory 62.6 Capstone Mining Corp Copper, Gold, Silver Minto, 20km W

Cantung Northwest Territories 62.0 North American Tungsten Corp Ltd Copper, Tungsten, Zinc Whitehorse, 385km ENE

Raglan Operation Quebec 61.7 Glencore Xstrata plc Cobalt, Copper, Nickel, PGMs Salluit, 117km SE

Raglan Zone 3 Quebec 61.7 Glencore Xstrata plc Cobalt, Copper, Nickel Salluit, 115km SE

Katinniq Quebec 61.7 Glencore Xstrata plc Cobalt, Copper, Nickel Montreal, 1,800km N

Raglan Zone 2 Quebec 61.7 Glencore Xstrata plc Cobalt, Copper, Nickel Salluit, 120km SE

Wolverine Yukon Territory 61.4 Yukon Zinc Corp Copper, Gold, Lead, Silver, Zinc Whitehorse, 275km ENE



FINLAND

Name State/Province Latitude Operator/Significant Owner Commodities Location

Adv. Exploration*

Iso-Kuotko Lappi Laani (Lapland) 68.0 Agnico-Eagle Mines Ltd Gold Rovaniemi, 175km NNW

Hanhimaa Lappi Laani (Lapland) 67.9 Agnico-Eagle Mines Ltd Copper, Gold, Lead, Silver, Zinc Kittila, 31km NNE

Lomalampi Lappi Laani (Lapland) 67.9 Government of Finland Cobalt, Copper, Gold, Nickel, PGMs Sodankyla, 70km NE

Kettukuusikko Lappi Laani (Lapland) 67.8 Taranis Resources Inc Gold Kittila, 17km NE

Riikonkoski Lappi Laani (Lapland) 67.7 Taranis Resources Inc Copper, Gold Kittila, 10km NE

Kuusamo North Oulun Laani 66.3 Dragon Mining Ltd Cobalt, Copper, Gold, Rare earth Kuusamo, 35km N

Kivimaa Lansi-Suomen Laani 66.2 Endomines AB Copper, Gold Rovaniemi, 50km SW

Kuusamo South Oulun Laani 66.2 Dragon Mining Ltd Cobalt, Gold Kuusamo, 25km NNW

Kuusamo 66.1 Belvedere Resources Ltd Cobalt, Copper, Gold, Uranium Ruka, 11km W

Kaukua Oulun Laani 65.9 Finore Mining Inc Copper, Gold, Nickel, PGMs Kemijärvi, 90km SSE

Lantinen Koillismaa Oulun Laani 65.9 Finore Mining Inc Cobalt, Copper, Gold, Nickel, PGMs Kemijärvi, 90km SSE

Haukiaho 65.9 Finore Mining Inc Copper, Gold, Nickel, PGMs Oulu, 150km NE

Oijarvi Lappi Laani (Lapland) 65.7 Agnico-Eagle Mines Ltd Gold, Silver Kemi, 60km E

Tormua Oulun Laani 65.3 Nordic Mines AB Gold Taivalkoski, 70km ESE

Kuhmo 65.2 Altona Mining Ltd Cobalt, Copper, Nickel, PGMs Oulu, 170km E

Nuottijarvi Oulun Laani 64.4 Elite Vantage Development Uranium Kajaani, 40km NE

Kiimala Oulun Laani 64.1 Aquila Resources Inc Copper, Gold Oulu, 100km SSW

Angesneva Oulun Laani 64.1 Aquila Resources Inc Gold Oulu, 100km S

Koski Oulun Laani 64.1 Vuorokas Oy Iron ore, Magnetite, Titanium Kajaani, 22km SW

Otanmaki Oulun Laani 64.1 Vuorokas Oy Magnetite, Titanium, Vanadium Kajaani, 30km WSW

Vuorokas Oulun Laani 64.1 Vuorokas Oy Iron ore, Magnetite, Titanium Kajaani, 32km WSW

Vesipera Oulun Laani 64.1 Aquila Resources Inc Gold Raahe, 65km Sof

Hirsikangas 64.1 Belvedere Resources Ltd Gold Kokkola,40km NE

Koivusaarenneva Lansi-Suomen Laani 63.9 Unspecified Company or Entity Ilmenite, Iron ore, Magnetite, Titanium Kokkola, 15km ENE

Outovesi 63.7 Keliber Oy Lithium, Spodumene Kokkola, 35km ESE

Syvajarvi 63.7 Keliber Oy Lithium, Spodumene, Tantalite Kokkola, 35km ESE

Rautavaara Ita-Suomen Laani 63.4 FinnAust Mining plc Cobalt, Copper, Nickel Siilinjärvi, 50km NE

Hosko Ita-Suomen Laani 63.1 Endomines AB Gold Ilomantsi, 48km NNE

Kokka Ita-Suomen Laani 63.0 Altona Mining Ltd Cobalt, Copper, Nickel Outokumpu, 28km NNW

Karelian Line Ita-Suomen Laani 63.0 Endomines AB Gold Ilomantsi, 40km NE

Kaavi-Kuopio 2 Ita-Suomen Laani 62.9 Sunrise Resources plc Diamonds Kuopio, 20km ENE

Saramaki 62.9 Altona Mining Ltd Cobalt, Copper, Nickel, Zinc Kylylahti, 15km NW

Muurinsuo Ita-Suomen Laani 62.8 Endomines AB Gold Ilomantsi, 24km ENE

Korvilansuo Ita-Suomen Laani 62.8 Endomines AB Gold Ilomantsi, 40km NE

Perttilahti Ita-Suomen Laani 62.8 Altona Mining Ltd Cobalt, Copper, Nickel, Zinc Joensuu, 38km NW

Kuittila Ita-Suomen Laani 62.8 Endomines AB Gold Ilomantsi, 15km ENE

Vuonos Ita-Suomen Laani 62.8 Altona Mining Ltd Cobalt, Copper, Zinc Joensuu, 35km WNW

Outokumpu 2 Ita-Suomen Laani 62.7 Altona Mining Ltd Cobalt, Copper, Nickel, Zinc Outokumpu

Riihilahti Ita-Suomen Laani 62.7 Altona Mining Ltd Cobalt, Copper, Nickel Joensuu, 55km WNW

Hautalampi Ita-Suomen Laani 62.7 Altona Mining Ltd Cobalt, Copper, Nickel, Zinc Joensuu, 40km WNW

Sikakangas Etela-Suomen Laani 62.7 Government of Finland Gold Seinajoki, 10km S

FinnAust Regional Oulun Laani 62.7 FinnAust Mining plc Cobalt, Copper, Nickel, Zinc Joensuu, 50km W

Valkeisenranta Ita-Suomen Laani 62.6 Altona Mining Ltd Cobalt, Copper, Nickel Varkaus, 30km NNW

Sarkalahti Ita-Suomen Laani 62.5 Altona Mining Ltd Copper, Nickel Varkaus, 20km N




FINLAND

Name State/Province Latitude Operator/Significant Owner Commodities Location


Sokli Lappi Laani (Lapland) 67.8 Yara International ASA Apatite, Phosphate Kovdor, 50km NW

Arctic 66.2 Gold Fields Ltd Copper, Gold, Nickel, PGMs Rovaniemi, 45km SE

Suhanko 66.1 Gold Fields Ltd Copper, Gold, Nickel, PGMs Rovaniemi, 43km SSE

Vaara 65.3 Altona Mining Ltd Cobalt, Copper, Nickel, PGMs Suomussalmi, 29km NNE

Peura-Aho 65.2 Altona Mining Ltd Cobalt, Copper, Nickel, PGMs Suomussalmi, 29km NNE

Sika-aho 65.2 Altona Mining Ltd Copper, Nickel Suomussalmi, 29km NNE

Hietaharju Oulun Laani 65.1 Altona Mining Ltd Cobalt, Copper, Nickel, PGMs Suomussalmi, 30km NNE

Arola Oulun Laani 64.4 Altona Mining Ltd Nickel Kajaani, 69km ENE

Kopsa Oulun Laani 63.8 Belvedere Resources Ltd Copper, Gold, Silver Haapajärvi, 5 km WNW

Lantta 63.6 Keliber Oy Beryl, Lithium, Spodumene, Tantalite Kokkola, 55km ESE

Keliber 63.6 Keliber Oy Lithium, Spodumene, Tantalite Kokkola, 55km ESE

Kalvia Lansi-Suomen Laani 63.6 Cove Resources Ltd (In Administration) Ilmenite, Magnetite Raw Kokkola, 60km ESE

Kaire Lansi-Suomen Laani 63.6 Cove Resources Ltd (In Administration) Ilmenite, Magnetite Raw Kokkola, 60km ESE

Haveri Lansi-Suomen Laani 61.7 Unspecified Company Copper, Gold Tampere, 36km NW

Feasibility Study

Kuervitikko Lappi Laani (Lapland) 67.6 Northland Resources SA Copper, Gold, Iron ore, Magnetite Kittila, 40km WSW

Hannukainen Lappi Laani (Lapland) 67.6 Northland Resources SA Copper, Gold, Iron ore, Magnetite Kittila, 41km WSW

Mustavaara Lappi Laani (Lapland) 65.8 Mustavaaran Kaivos Oy Iron ore, Magnetite, Titanium Rovaniemi, 130km SE

Otanmaki Oulun Laani 64.1 Vuorokas Oy Iron ore, Magnetite, Titanium Kajaani, 32km WSW

Koivu Lansi-Suomen Laani 63.6 Cove Resources Ltd (In Administration) Ilmenite, Magnetite Raw Kokkola, 60km ESE

Lahtojoki Ita-Suomen Laani 63.0 Kimberley Diamonds Ltd Diamonds Kuopio, 47km WNW

Ramepuro Ita-Suomen Laani 62.9 Endomines AB Gold Ilomantsi, 30km NE

Construction

Taivaljarvi 63.9 Sotkamo Silver AB Copper, Gold, Lead, Zinc Kuhmo, 30km SW

Operating

Kittila 67.9 Agnico-Eagle Mines Ltd Gold Kittila, 40km NE

Kevitsa 67.7 First Quantum Minerals Ltd Cobalt, Copper, Gold, Nickel, PGMs Kemijärvi, 110km N

Pahtavaara 67.6 Lappland Goldminers (Administration) Gold Sodankylä, 25km NNW

Kemi Lappi Laani (Lapland) 65.8 Outokumpu Oyj Chromite Kemi, 7km ENE

Tornio Smelter Lappi Laani (Lapland) 65.8 Outokumpu Oyj Ferrochrome Tornio

Laiva Oulun Laani 64.5 Nordic Mines AB Gold Raahe, 15km SSE

Talvivaara Oulun Laani 64.0 Talvivaara Mining Co (Administration) Cobalt, Copper, Uranium, Zinc Kajaani, 30km SSE

Kokkola Smelter Lansi-Suomen Laani 63.9 Boliden AB Cadmium, Zinc Kokkola, 4km NW

Kokkola Refinery Lansi-Suomen Laani 63.9 Freeport-McMoRan Copper & Gold Inc Cobalt Kokkola, 5km W

Pyhasalmi Oulun Laani 63.7 First Quantum Minerals Ltd Copper, Gold, Silver, Sulphur, Zinc Iisalmi, 55km W

Siilinjarvi Lansi-Suomen Laani 63.1 Yara International ASA Apatite, Phosphate Siilinjärvi, 5km NNE

Pampalo Ita-Suomen Laani 63.0 Endomines AB Gold Lieksa, 70km ESE

Luikonlahti Plant Ita-Suomen Laani 62.9 Altona Mining Ltd Copper, Gold, Nickel Outokumpu, 27km NNW

Kylylahti 62.9 Altona Mining Ltd Cobalt, Copper, Gold, Nickel, Zinc Outokumpu, 25km NE

Outokumpu Ita-Suomen Laani 62.7 Altona Mining Ltd Cobalt, Copper, Gold, Nickel, Zinc Outokumpu

Orivesi Lansi-Suomen Laani 61.7 Dragon Mining Ltd Gold Tampere, 26km NE

Vammala Lansi-Suomen Laani 61.3 Dragon Mining Ltd Gold Tampere,50km SW

Harjavalta Refinery Lansi-Suomen Laani 61.3 Boliden AB Copper, Gold, Nickel, Silver Pori, 26km SE

Harjavalta Refinery Lansi-Suomen Laani 61.3 MMC Norilsk Nickel OJSC Nickel Pori, 26km SE

Jokisivu Lansi-Suomen Laani 61.1 Dragon Mining Ltd Gold Rauma, 55km E



GREENLAND


Adv. Exploration

Havik Qaasuitsup 76.3 Red Rock Resources plc Gold, Iron ore, Magnetite Qaanaaq, 133km SSE

Ladderbjerg NE National Park 73.5 Unspecified Company Copper, Lead Kulusuk, 1050km NE

Rubjerg Knude NE National Park 72.6 Unspecified Company Copper Kulusuk, 940km NE

Ukkusissat Qaasuitsup 71.1 Angel Mining plc (Administration) Zinc Nuuk, 770km N

Qeqertaa Qaasuitsup 69.6 Avannaa Resources Ltd Diamond Illulissat, 50km NE

Storoe Sermersooq 64.4 NunaMinerals AS Gold Nuuk, 40km NE

Aries Kujalleq 61.2 Ram Resources Ltd Niobium, Rare earths, Tantalum, Zircon Qassiarsuk, 30km E

Motzfeldt Kujalleq 61.2 Ram Resources Ltd Niobium, Rare earths, Tantalum, Uranium Qassiarsuk, 17km NE

Isortoq Kujalleq 61.0 West Melville Metals Inc Iron ore, Magnetite, Titanium Nuuk, 420km SE


Ymer NE National Park 73.3 NunaMinerals AS Antimony, Gold, Tungsten Ymer Island

Karrat Qaasuitsup 71.7 Avannaa Resources Ltd Rare earths, Yttrium Nuugaatsiaq, 20km E

Skaergaard Sermersooq 68.2 Platina Resources Ltd Gold, Palladium, Platinum, PGMs Reyjkavik, 630km NW

White Mountain Qeqqata 66.5 Hudson Resources Inc Alumina, Anorthosite Saqqarliit, 39km SSE

Sarfartoq Qeqqata 66.5 Hudson Resources Inc Cerium, Diamond, Rare earths Nuuk, 250km N

Aappaluttoq Sermersooq 63.0 True North Gems Inc Ruby, Sapphire Nuuk, 145km SSE

Fiskenaesset Sermersooq 63.0 True North Gems Inc Ruby, Sapphire Nuuk, 160km S

Feasibility Study

Citronen Fjord NE National Park 83.0 Ironbark Zinc Ltd Lead, Zinc North Pole, 775km S

Malmbjerg Sermersooq 71.8 KGHM Polska Miedz SA Molybdenum Scoresbysund, 200km NW

Isua Sermersooq 65.2 London Mining plc Magnetite Nuuk, 140km NE

Kvanefjeld Kujalleq 61.0 Greenland Minerals and Energy Rare earth, Uranium, Yttrium, Zinc Nuuk, 465km SE

Zone 3 Kujalleq 61.0 Greenland Minerals and Energy Rare earth, Uranium, Yttrium, Zinc Nuuk, 465km SE

Sorensen Kujalleq 60.9 Greenland Minerals and Energy Cerium, Dysprosium, Rare earths Nuuk, 465km SE

Tanbreez Kujalleq 60.9 Tanbreez Mining Greenland AS Feldspar, Niobium, Rare earths Nuuk, 470km SE

Construction

Black Angel Qaasuitsup 71.7 Angel Mining plc (Administration) Lead, Silver, Zinc Nuuk, 770km N

Operating

Nalunaq Kujalleq 60.4 Angel Mining plc (Administration) Gold Nanortalik, 33km NE

ICELAND


Construction

Helguvik Aluminium Smelter 64.0 Century Aluminum Co Aluminium Reykjavik, 35km WSW

Operating

Fjardaal Aluminium Smelter 65.0 Alcoa Inc Aluminium Reykjavik, 385km ENE

Nordural Aluminium Smelter Grundartangi 64.4 Century Aluminum Co Aluminium Reykjavík, 25km NNE

Reykjavik Aluminium Smelter 64.0 Rio Tinto Ltd Aluminium Reykjavik, 11km SW



NORWAY


Adv. Exploration

Repparfjord Finnmark 70.4 Metallica Mining ASA Copper Hammerfest, 30km SE

Grundtjern Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 10km S

Sostervann Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 10km S

Tverrdalen Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 11km S

Bjornfell Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 12km S

Oskarsmalm Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 14km S

Jerntoppen Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 14km S

Jennestad Nordland 68.8 Nordic Graphite Ltd Graphite Harstad, 45km W

Joma Tailings Nord-Trondelag 64.9 CRD Holdings AB Copper, Gold, Iron ore, Silver Trondheim, 230km NE

Espedalen Oppland 61.4 Drake Resources Ltd Cobalt, Copper, Nickel Lillehammer, 55km NW

Dalen Oppland 61.4 Drake Resources Ltd Cobalt, Copper, Nickel Lillehammer, 58km NW

Stormyra Oppland 61.3 Drake Resources Ltd Cobalt, Copper, Nickel Lillehammer, 58km NW


Nussir Finnmark 70.5 Nussir ASA Copper, Gold, PGMs Tromsø, 210km ENE

Ulveryggen Finnmark 70.5 Nussir ASA Copper Hammerfest, 32km SE

Bidjovagge Finnmark 69.3 Arctic Gold AB Copper, Gold Kautokeino, 40km NW

Engebo Sogn og Fjordane 61.5 Nordic Mining ASA Garnet, Rutile Bergen, 120km N

Hurdal Akershus 60.5 Intex Resources ASA Molybdenum Oslo, 60km NNE

Nesodden Hordaland 60.1 Nordic Mining ASA Quartz Bergen, 50km SE

Construction

Lunckefjell Spitsbergen, Svalbad 78.0 Store Norske AS Coal Longyearbyen, 35km SE

Operating

Store Norske Spitsbergen, Svalbad 78.2 Store Norske AS Coal Longyearbyen

Gruve No7 Spitsbergen, Svalbad 78.1 Store Norske AS Coal Longyearbyen, 16km SE

Svea Nord Spitsbergen, Svalbad 77.9 Store Norske AS Coal Longyearbyen, 40km SE

Elkem Tana Quarry Finnmark 70.5 Elkem Tana AS Quartz Nikel', 135km NNW

Sydvaranger Finnmark 69.7 Northern Iron Ltd Magnetite Kirkenes, 10km S

Bjornevatn Finnmark 69.7 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 8km S

Fisketind Ost Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 13km S

Kjellmannsasen Finnmark 69.6 Northern Iron Ltd Iron ore, Magnetite Kirkenes, 15km S

Franzefoss Nordland 68.4 Franzefoss Miljokalk AS Limestone Narvik, 20km W

Kvannevann Nordland 66.4 Rana Gruber AS Iron ore, Magnetite Kvannevann

Mosjoen Smelter Nordland 65.9 Alcoa Inc Aluminium Mo I Rana, 100km SW

Sunndal Smelter Oppland 62.4 Norsk Hydro ASA Aluminium Molde, 90km E

Ardal Smelter Sogn og Fjordane 61.6 Norsk Hydro ASA Aluminium Bergen, 200km NE

Hoyanger Smelter Sogn og Fjordane 61.2 Norsk Hydro ASA Aluminium Bergen, 100km NNE

Gudvangen Sogn og Fjordane 60.9 Nordic Mining ASA Aluminous Clay, Anorthosite Bergen, 95km NE

Odda Smelter Hordaland 60.1 Boliden AB Aluminium, Zinc Odda , 3km NNW o9f



RUSSIA



Vuruchuaivench Murmansk 67.5 MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Monchegorsk, 80km SE

Usinsk 3 Komi 67.1 Novolipetsk Steel OJSC Coal, Coal Vorkuta

Mangazeisky Yakutia (Sakha) 65.7 Silver Bear Resources Inc Copper, Gold, Lead, Silver, Zinc Yakutsk, 390km N

Oroch Magadan 63.7 Polymetal International plc Gold, Silver Magadan, 950km NE

Amaam North Chukotka (Chukot) 63.0 Tigers Realm Coal Ltd Coal Anadyr, 200km SSE

Solur-Vostochnaya Yakutia (Sakha) 62.7 Alrosa OJSC Diamonds Mirnyy, 25km NW

Amaam Chukotka (Chukot) 62.7 Tigers Realm Coal Ltd Coal, Coal Coking Anadyr, 240km SSE

Nezhdaninskoye Yakutia (Sakha) 62.5 Polyus Gold International Ltd Gold, Silver Yakutsk, 450km E

Feasibility Study

Souker Murmansk 69.4 Kola Mining Corp Copper, Nickel Nikel', 12km ENE

Maslovskoye Taymyr 69.2 MMC Norilsk Nickel OJSC Cobalt, Copper, Gold, Nickel, PGMs Noril'sk, 14km SSW

Pellapakh Murmansk 68.5 Grangesberg Iron Ore plc Copper, Molybdenum Kola Penninsula

Fedorova Murmansk 67.5 Barrick Gold Corp Copper, Gold, Nickel, PGMs Apatity, 90km E

Novogodnee Monto Yamalo-Nenets 66.8 Petropavlovsk plc Gold, Iron ore Salekhard, 25km N

Prognoz Magadan 63.7 Polymetal International plc Gold, Silver Magadan, 950km NE

Perevalnoye Magadan 62.7 Polymetal International plc Copper, Lead, Silver, Zinc Omsukchan, 25km WNW

Construction

Skalisty Taymyr 69.6 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 33km NNE

Kekura Centre Chukotka (Chukot) 67.0 Bazovye Metally CJSC Gold Aliskerovo, 92km SSW

Grib Arkhangel 65.5 Lukoil OAO Diamonds Arkhangel, 120km NNE

Karpinskogo-1 Arkhangel 65.3 Alrosa OJSC Diamonds Arkhangel'sk, 90km NNE

Botubinskaya Yakutia (Sakha) 65.0 Alrosa OJSC Diamonds Nyurba, 200km NNW

Nachalnoye-2 Magadan 62.6 Polymetal International plc Silver Omsukchan, 25km WNW

Natalka Magadan 61.6 Polyus Gold International Ltd Gold Magadan, 280km NW

Ametistovoe Kamchatka 61.5 Renova Group Gold Tilichiki, 125km NW

Operating

Almazy Anabara Division Yakutia (Sakha) 71.0 Alrosa OJSC Diamonds Noril'sk, 990km ENE

Oktyabrsky Taymyr 69.6 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 28km N

Taimyrsky Taymyr 69.6 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 29km NNE

Komsomolsky Taymyr 69.5 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 26km NNE

Talnakh Concentrator Taymyr 69.5 MMC Norilsk Nickel OJSC Copper, Nickel Noril'sk, 24km N

Mayak Taymyr 69.5 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 23km NNE

Kola Peninsula (Pechenga) Murmansk 69.4 MMC Norilsk Nickel OJSC Copper, Gold, Ilmenite, Nickel, PGMs Murmansk, 110km NW

Kaula-Kotselvaara Murmansk 69.4 MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Nikel, 3km SE

Severny-Gluboky Murmansk 69.4 MMC Norilsk Nickel OJSC Copper, Gold, Nickel, PGMs Nikel, 22km E

Nadezhda Smelter Taymyr 69.3 MMC Norilsk Nickel OJSC Copper, Nickel Noril'sk, 9km W

Norilsk Concentrator Taymyr 69.3 MMC Norilsk Nickel OJSC Nickel Noril'sk, 1km S

Taimyr Peninsula (Polar) Taymyr 69.3 MMC Norilsk Nickel OJSC Cobalt, Copper, Gold, Indium, PGMs Norilsk

Medvezhy Ruchey Taymyr 69.3 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 4km SSW

Zapolyarny Taymyr 69.3 MMC Norilsk Nickel OJSC Copper, Nickel, PGMs Noril'sk, 5km SW

Mayskoye Chukotka (Chukot) 69.0 Polymetal International plc Gold, Silver Komsomol'skiy, 54km E

Olenogorsky Murmansk 68.2 Olkon JSC Iron ore, Magnetite Raw Olenegorsk

Olkon Murmansk 68.2 Olkon JSC Iron ore, Magnetite Raw Olenegorsk

Monchegorsk Refinery Murmansk 67.9 MMC Norilsk Nickel OJSC Cobalt, Copper, Nickel Monchegorsk

Lovozersky Murmansk 67.9 Lovozersky GOK Beryllium, Cerium, Rare earth Apatity, 65km NE

Oleniy Ruchey Murmansk 67.7 Acron JSC Apatite, Nepheline Syenite Kirovsk, 25km ENE

Kirovsky Murmansk 67.7 Apatit OJSC Bauxite, Nepheline Syenite, Phosphate Kirovsk, 6km NE



RUSSIA


Operating (continued)

Apatit Murmansk 67.7 Apatit OJSC Bauxite, Nepheline Syenite, Phosphate Kirovsk

Rasvumchorr Murmansk 67.6 Apatit OJSC Bauxite, Nepheline Syenite, Phosphate Kirovsk, 7km NE

Vostochny Murmansk 67.6 Apatit OJSC Bauxite, Nepheline Syenite, Phosphate Kirovsk, 20km ENE

ANBP-3 Concentrator Murmansk 67.6 Apatit OJSC Phosphate Kirovsk

Central Murmansk 67.6 Apatit OJSC Bauxite, Nepheline Syenite, Phosphate Kirovsk, 8km ENE

Dvoinoye Chukotka (Chukot) 67.6 Kinross Gold Corp Gold, Silver Aliskerovo, 76km ESE

ANBP-2 Concentrator Murmansk 67.6 Apatit OJSC Phosphate Apatity

Kovdorsky Murmansk 67.6 EuroChem Mineral Co Apatite, Iron ore, Magnetite, Phosphate Kovdor

Vorkutaugol Komi 67.5 Vorkutaugol JSC Coal Vorkuta

Kandalaksha Smelter Murmansk 67.2 UC RUSAL plc Aluminium Kandalaksha

Kupol Chukotka (Chukot) 66.8 Kinross Gold Corp Gold, Silver Aliskerovo, 140km SE

Sentachan Yakutia (Sakha) 66.5 GeoProMining Ltd Antimony Yakutsk, 600km NE

Udachny Division Yakutia (Sakha) 66.4 Alrosa OJSC Diamonds Udachnyy, 19km WSW

Udachny Yakutia (Sakha) 66.4 Alrosa OJSC Diamonds Udachnyy, 19km WSW

Zarnitsa Yakutia (Sakha) 66.4 Alrosa OJSC Diamonds Udachny, 18km E

Komsomolskaya Yakutia (Sakha) 66.0 Alrosa OJSC Diamonds Aykhal, 10km NE

Jubilee Yakutia (Sakha) 66.0 Alrosa OJSC Diamonds Aykhal, 12km NW

Aikhal Yakutia (Sakha) 65.9 Alrosa OJSC Diamonds Aykhal, 1km S

Aikhal Division Yakutia (Sakha) 65.9 Alrosa OJSC Diamonds Aykhal, 1km S

Arkhangelskaya Arkhangel 65.3 Alrosa OJSC Diamonds Archangel, 86km NNE

Lomonosov Division Arkhangel 65.3 Alrosa OJSC Diamonds Arkhangel'sk, 85km NNE

Nyurba Division Yakutia (Sakha) 65.0 Alrosa OJSC Diamonds Nyurba, 200km NNW

Nyurbinskaya Yakutia (Sakha) 65.0 Alrosa OJSC Diamonds Nyurba, 200km NNW

Nyurba (Placer) Yakutia (Sakha) 65.0 Alrosa OJSC Diamonds Nyurba, 200km NNW

Timan Komi 64.8 UC RUSAL plc Aggregate, Bauxite Ukhta, 155km NNE

Karelsky Okatysh Karelia 64.7 Karelsky Okatysh JSC Magnetite Raw Kostomuksha, 7km W

Sarylakh-Surma Yakutia (Sakha) 64.4 GeoProMining Ltd Antimony, Gold Ust-Nera, 75km SW

North Onega Arkhangel 64.0 UC RUSAL plc Bauxite Arkhangel

Badran Yakutia (Sakha) 64.0 Zapadnaya Gold Mining Ltd Gold Ust-Nera, 90km SW

Birkachan Magadan 63.9 Polymetal International plc Gold, Silver Magadan, 950km NE

Nadvoitsy Smelter Karelia 63.9 UC RUSAL plc Aluminium Segezha, 16km N

Kubaka Magadan 63.7 Polymetal International plc Gold, Silver Magadan, 950km NE

Tsokol Magadan 63.7 Polymetal International plc Gold, Silver Magadan, 950km NE

Arylakh Magadan 63.2 Polymetal International plc Gold, Silver Sinegor'ye, 260km ENE

Lunnoye Magadan 63.1 Polymetal International plc Gold, Silver Omsukchan, 134km from

Berelekh Magadan 62.8 Susumanzoloto OJSC Gold Susuman, 3km NW

Dukat Magadan 62.6 Polymetal International plc Gold, Silver Omsukchan, 25km WNW

Dalniy Magadan 62.5 Polymetal International plc Gold, Silver Karazhal, 26km WSW

Mirny Division Yakutia (Sakha) 62.5 Alrosa OJSC Diamonds Mirnyy, 8km ESE

Mir Yakutia (Sakha) 62.5 Alrosa OJSC Diamonds Mirnyy, 8km ESE

Sopka Kvartsevaya Magadan 62.5 Polymetal International plc Gold, Silver Karazhal

Mirny Alluvial Yakutia (Sakha) 62.5 Alrosa OJSC Diamonds Mirnyy, 25km ESE

International Yakutia (Sakha) 62.5 Alrosa OJSC Diamonds Mirny, 15km SW

Goltsovoye Magadan 61.0 Polymetal International plc Lead, Silver, Zinc Magadan, 575km NE

Shemurskoye Sverdlovsk 60.6 Ural Mining and Metallurgical Co Copper, Gold, Silver, Zinc Ivdel', 35km WSW

North Urals Sverdlovsk 60.2 UC RUSAL plc Bauxite Severouralsk, 4km N

Blagodatnoye Krasnoyarsk 60.1 Polyus Gold International Ltd Gold Vangash, 37km WNW

Khakanja Khabarovsk 60.0 Polymetal International plc Gold, Silver Okhotsk, 92km NW

Khakanja Khabarovsk 60.0 Polymetal International plc Gold, Silver Okhotsk, 90km NW



SWEDEN


Adv. Exploration*

Sautusvaara Norrbotten 67.9 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 25km E

Vieto Norrbotten 67.8 Hannans Reward Ltd Copper, Iron ore, Magnetite Kiruna, 20km W

Laukujarvi Norrbotten 67.8 Hannans Reward Ltd Copper, Iron ore, Magnetite Kiruna, 30km W

Sorvivuoma Norrbotten 67.8 Talga Resources Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 41km E

Puoltsa Norrbotten 67.8 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 15km WSW

Vathanvaara Norrbotten 67.8 Talga Resources Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 41km ESE

Ekstromsberg Norrbotten 67.8 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 30km WSW

Pahtohavare Norrbotten 67.8 Hannans Reward Ltd Copper, Gold Kiruna, 9km SW

Norrbotten Norrbotten 67.8 Elgin Resources Inc Copper, Gold, Iron ore, Magnetite Kiruna Mining District

Manty Vathanvaara Norrbotten 67.8 Talga Resources Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 42km ESE

Vittangi Norrbotten 67.8 Talga Resources Ltd Copper, Gold, Graphite, Iron ore Kiruna, 50km ESE

Kuusi Nunasvaara Norrbotten 67.7 Talga Resources Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 50km ESE

Harrejaure Norrbotten 67.7 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 32km SW

Renhagen Norrbotten 67.7 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 32km SW

Kiruna Norrbotten 67.7 Hannans Reward Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 40km WSW

Tjarrojakka Norrbotten 67.7 Hannans Reward Ltd Copper, Iron ore, Magnetite Kiruna, 49km WSW

Pattok Norrbotten 67.7 Hannans Reward Ltd Iron ore, Magnetite Kiruna, 50km WSW

Jankka Norrbotten 67.7 Talga Resources Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 48km ESE

Kiruna South Norrbotten 67.6 Antofagasta plc Copper, Gold Kiruna, 25km SSE

Masugnsbyn Norrbotten 67.5 Talga Resources Ltd Iron ore, Magnetite Kiruna, 85km SE

Akosjegge Norrbotten 66.9 Hannans Reward Ltd Iron ore, Magnetite Gallivare, 56km SW

Purnu Norrbotten 66.9 Botnia Exploration Holding AB Copper, Gold Gällivare, 40km SE

Kallak North Norrbotten 66.8 Jokkmokk Iron Mines AB Iron ore, Magnetite Malmberget, 78km SW

Kallak Norrbotten 66.8 Jokkmokk Iron Mines AB Iron ore, Magnetite Malmberget, 78km SW

Munka Norrbotten 66.6 Beowulf Mining plc Molybdenum Kiruna, 185km SSW

Raitajarvi Norrbotten 66.5 Talga Resources Ltd Graphite Boden, 95km NE

Skuppesavon Norrbotten 66.4 Continental Precious Minerals Inc Uranium Gällivare, 135km WSW

Pleutajokk Norrbotten 66.3 Continental Precious Minerals Inc Uranium Mo i Rana, 150km E

Ballek Norrbotten 66.1 Beowulf Mining plc Copper, Gold, Silver, Uranium Gällivare, 155km SW

Lulepotten Norrbotten 66.1 Beowulf Mining plc Copper, Gold, Silver Arjeplog, 13km E

Kvarnan Norrbotten 66.0 Continental Precious Minerals Inc Uranium Boden, 55km WNW

Laver Norrbotten 65.8 Boliden AB Copper, Gold, Molybdenum, Silver Boden, 67km W

Svartliden Norrbotten 65.3 Norrliden Mining AB Copper, Gold, Silver, Zinc Skellefteå, 95km NW

stone Norrbotten 65.3 Norrliden Mining AB Copper, Gold, Lead, Silver, Zinc Arvidsjaur, 37km SSE

Sellmansberget Vasterbotten 65.2 Botnia Exploration Holding AB Tungsten Skellefteå, 180km WNW

Eva Vasterbotten 65.2 Norrliden Mining AB Copper, Gold, Lead, Silver, Zinc Skellefteå, 90km WNW

Gubbtrask Vasterbotten 65.1 Lappland Goldminers (Administration) Gold, Lead, Silver, Zinc Skellefteå, 160km WNW

Nyborg Vasterbotten 65.1 Terraco Gold Corp Copper, Silver, Zinc Skellefteå, 115km WNW

Stekenjokk Vasterbotten 65.1 Vilhelmina Mineral AB Copper, Gold, Lead, Silver, Zinc Mo i Rana, 135km S

Norra Vasterbotten 65.1 Orex Minerals Inc Copper, Gold, Silver, Zinc Skellefteå, 165km WNW

Barsele Vasterbotten 65.0 Orex Minerals Inc Gold Skellefteå, 165km WNW

Barsele Vasterbotten 65.0 Orex Minerals Inc Copper, Gold, Silver, Zinc Skellefteå, 165km WNW

Langdal Vasterbotten 64.8 Wiking Mineral AB Copper, Gold, Lead, Silver, Zinc Skellefteå, 35km WNW

Jormlien Trondelag 64.7 Botnia Exploration Holding AB Copper, Zinc Trondheim, 220km NE




SWEDEN



Viscaria Norrbotten 67.9 Avalon Minerals Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 5km W

Discovery Zone Norrbotten 67.8 Hannans Reward Ltd Copper, Gold, Magnetite Kiruna, 8km SSW

Tributary Zone Norrbotten 67.8 Hannans Reward Ltd Magnetite Kiruna, 8km SSW

Rakkuri Norrbotten 67.8 Hannans Reward Ltd Copper, Gold, Iron ore, Magnetite Kiruna, 10km S

Nunasvaara Norrbotten 67.7 Talga Resources Ltd Graphite Kiruna, 50km ESE

Mertainen Norrbotten 67.7 LKAB Iron ore, Magnetite Kiruna, 30km ESE

Ronnbacken Vasterbotten 65.5 Nickel Mountain Group AB Cobalt, Nickel, PGMs Storuman, 90km NW

Storuman Vasterbotten 65.3 Tertiary Minerals plc Fluorite Storuman, 30km NW

Vargbacken Vasterbotten 65.1 Botnia Exploration Holding AB Gold Skellefteå, 130km WNW

Norra Norrliden Vasterbotten 65.0 Elgin Mining Inc Copper, Gold, Lead, Silver, Zinc Skellefteå, 70km WNW

Haggan Jamtland 63.1 Aura Energy Ltd Molybdenum, Nickel, Uranium Ostersund, 21km SW

Viken Jamtland 63.0 Continental Precious Minerals Inc Copper, Molybdenum, Nickel Ostersund, 23km SW

Woxna Gavleborg 61.5 Flinders Resources Ltd Graphite, Lead Bollnäs, 50km WNW

Vindfall-Sortarnan Gavleborg 60.6 Wiking Mineral AB Copper, Lead, Silver, Zinc Sandviken, 8km ESE

Feasibility Study

Pellivuoma Norrbotten 67.4 Northland Resources SA Copper, Gold, Iron ore, Magnetite Pajala, 25km NW

Stora Sahavaara Norrbotten 67.4 Northland Resources SA Copper, Iron ore, Magnetite Pajala, 19 km NNW

Faboliden Vasterbotten 64.6 Lappland Goldminers (Administration) Gold, Silver Lycksele, 35km W

Haksberg Dalarnas 60.2 Nordic Iron Ore AB Iron ore, Magnetite Ludvika, 5km N

Ludvika Dalarnas 60.1 Nordic Iron Ore AB Iron ore, Magnetite Ludvika, 8km WSW

Blotberget Dalarnas 60.1 Nordic Iron Ore AB Iron ore, Magnetite Ludvika, 7km WSW

Grangesberg-Risberg Dalarnas 60.1 Grangesberg Iron AB Iron ore, Magnetite Grangesberg

Operating

Kiruna Norrbotten 67.8 LKAB Iron ore, Magnetite Kiruna, 3km SW

Gruvberget Norrbotten 67.7 LKAB Magnetite Svappavaara, near

Svappavaara Norrbotten 67.6 LKAB Iron ore, Magnetite Kiruna, 40km SE

Tapulivuoma Norrbotten 67.4 Northland Resources SA Iron ore, Magnetite Pajala, 25km NNW

Kaunisvaara Norrbotten 67.4 Northland Resources SA Copper, Gold, Iron ore, Magnetite Pajala, 20km NNW

Malmberget 67.2 LKAB Iron ore, Magnetite Malmberget

Aitik Norrbotten 67.1 Boliden AB Copper, Gold, Molybdenum, Silver Gallivare, 15km ESE

Bjorkdal Vasterbotten 64.9 Elgin Mining Inc Gold Skellefteå, 25km NW

Kankberg Tellurium Vasterbotten 64.9 Boliden AB Gold, Silver, Tellurium Skelleftea, 35 km WNW

Boliden Vasterbotten 64.9 Boliden AB Copper, Gold, Lead, Tellurium Skelleftea, 30km WNW

Svartliden Vasterbotten 64.8 Dragon Mining Ltd Gold Umea, 160km NW

Ronnskar Refinery Vasterbotten 64.7 Boliden AB Copper, Gold, Lead, Selenium Skelleftehamn, 3km SE

Kubikenborg Smelter Vasternorrland 62.4 UC RUSAL plc Aluminium Sundsvall, 3km SE

Kringel Gavleborg 61.4 Flinders Resources Ltd Graphite Bollnäs, 40km W

Garpenberg Dalarnas 60.3 Boliden AB Copper, Gold, Lead, Silver, Zinc Hedemora, 12km ENE

Dannemora Uppsala 60.2 Dannemora Mineral AB Iron ore, Magnetite, Manganese Uppsala, 40km NE



0890763 BC Ltd18526 Yukon Inc19651 Yukon Inc21st North 37999 Yukon Inc4763 NWT Ltd524520 BC Ltd644981 BC Ltd7606 Yukon Ltd877384 Alberta Ltd953725 NWT LtdAben Resources LtdAcme Resources IncAcron JSC Adamera Minerals CorpAdvanced Explorations IncAgnico-Eagle Mines LtdAkkerman Exploration BV Alaska Gold Corp Alberta Star Development CorpAlcoa IncAlexco Resource CorpAlix Resources CorpAll Star Minerals plc Almaden Minerals LtdAlrosa OJSC Altona Mining Ltd AM Gold IncAmericas Bullion Royalty CorpAnconia Resources CorpAndesite Capital LLCAndover Mining Corp Angel Mining (in administration) Anglo Alaska Gold CorpAnglo American plc Anglo Canadian Mining CorpAnsell Capital CorpAnthill Resources LtdAntofagasta plc Apatit OJSC Aquila Resources Inc Arctic Gold AB Arctic Star Exploration CorpArcturus Ventures IncArcus Development Group IncAREVA SAArgentum CJSCArgonaut Gold IncArgus Metals CorpArkticheskiye Geolog' Raboty Arrowstar Resources LtdAshburton Ventures IncATAC Resources LtdAura Energy Ltd Aura Silver Resources IncAurchem Exploration LtdAurchem LtdAurion Resources Ltd Avalon Minerals Ltd Avalon Rare Metals IncAvannaa Resources Ltd Avaron Mining CorpAzimut Exploration IncAzteca Gold Corp Baffinland Iron Mines CorpBama Gold Corp

Banyan Gold CorpBarrick Gold Corp Bathurst Inlet Developments (1984) LtdBazovye Metally CJSC BCGold CorpBearing Resources LtdBeaufield Resources IncBelvedere Resources LtdBenz Capital CorpBeowulf Mining plc Bering Straits Native CorpBitterroot Resources LtdBlack Range Minerals Ltd Black Sea Metals IncBlind Creek Resources LtdBluenose Gold CorpBluestone Resources IncBoliden AB Boss Resources Ltd Boxxer Gold CorpBrandenburg Energy CorpBristol Bay Native CorpBrookemont Capital IncBullmoose Mines LtdBurnstone Ventures IncCache Exploration IncCalista CorpCameco CorpCanada Carbon IncCanada Coal IncCanadian Dehua International Mines IncCanadian Natural Resources LtdCanadian Royalties IncCanadian Zinc CorpCanAlaska Uranium Ltd Canterra Minerals CorpCantex Mine Development CorpCapstone Mining CorpCariboo Rose Resources LtdCarlin Gold CorpCathro Resources CorpC-D Development Corp Central Resources CorpCentury Aluminum CoChevron CorpClear Creek Resources LtdCMC Metals LtdCoastal Gold CorpColorado Resources LtdCommander Resources LtdComstock Metals LtdConroy Gold and Natural Resources plc Constantine Metal Resources LtdContinental Precious Minerals Inc Copper North Mining CorpCorvus Gold Inc Cove Resources Ltd (In Administration) Coventry Resources Inc CRD Holdings AB Cullen Resources Ltd Curlew Lake Resources IncCW Properties LLCDalradian Resources Inc Dannemora Mineral AB Darnley Bay Resources Ltd

Dawson Gold CorpDe Beers SADenali Resources LtdDiadem Resources LtdDiavik Diamond Mines IncDominion Diamond CorpDonlin Gold LLC Dragon Mining Ltd Drake Resources Ltd Eagle Plains Resources LtdE-Energy Ventures IncElgin Mining IncElgin Resources IncElite Vantage DevelopmentElkem Tana AS EMC Metals CorpEndomines AB Endurance Gold CorpEquitas Resources CorpErex International LtdEthos Gold CorpEurasia Mining plc Eurasian Minerals Inc EuroChem Mineral CoExpedition Mining IncExploratus LtdFinnAust Mining plc Finore Mining Inc Fire River Gold Corp Firesteel Resources IncFirst Point Minerals CorpFirst Quantum Minerals Ltd Flinders Resources LtdFortune Minerals LtdForum Uranium CorpFranzefoss Miljokalk AS Freegold Ventures Ltd Freeport-McMoRan Copper & Gold Inc Full Metal Minerals Ltd Full Metal Zinc Ltd G & S Trading IncGCO Minerals CoGDK Baimskaya LLC Geoforum Scandinavia ABGeoProMining Ltd Georgetown CorpGGL Resources CorpGlencore Xstrata plcGold Fields LtdGold World Resources IncGoldbank Mining CorpGoldbar Resources IncGoldON Resources LtdGoldRich Mining Co Goldrich NyacAU Placer LLC Goldspike Explorations IncGoldstrike Resources LtdGorilla Minerals CorpGPM Metals IncGrangesberg Iron AB Grangesberg Iron Ore plc Graphite One Resources Inc Great Bear Resources LtdGreatland Exploration Ltd Greenland Minerals and EnergyGV Gold OJSC

Hannans Reward Ltd Hawkeye Gold & Diamond IncHFX Holding CorpHighland Gold Mining Ltd Hodges Resources Ltd Hornby Bay Mineral Exploration LtdHudBay Minerals IncHudson Resources Inc Hunter Bay Minerals plcHunter Exploration GroupIndependence Gold CorpInform Resources CorpInterior Alsaka Mining LLCInternational Gold Resources IncInternational Lithium CorpInternational Samuel Exploration CorpInternational Tower Hill Mines Ltd Intex Resources ASA Ironbark Zinc Ltd Jien International Investment LtdJilin Jien Nickel Industry CoJokkmokk Iron Mines AB Jome Naeringspark Juuan Dolomiittikalkki Oy Kaiyue International IncKalac Holdings LtdKaminak Gold CorpKapuskasing Gold CorpKarelian Diamond Resources plc Karelsky Okatysh JSC Kaska Minerals CorpKeliber Oy Kennady Diamonds IncKennecott Exploration Co Kestrel Gold IncKettle River Resources LtdKGHM Polska Miedz SA Khalkos Exploration IncKilldeer Minerals IncKimberley Diamonds LtdKing Terrence ErnestKinross Gold CorpKiska Metals Corp Kivalliq Energy CorpKJ Gold Canada LtdKlondike Gold CorpKlondike Silver CorpKlondike Star Mineral CorpKobex Minerals IncKola Mining Corp Kopparberg Mineral AB Lakeland Resources IncLappland Goldminers (Administration) Largo Resources LtdLeeward Capital CorpLes Ressources Tectonic IncLiberty Gold Corp Liberty Star Uranium & Metals Corp Linc Energy Ltd Linux Gold CorpLKAB Lobo del Norte Exploration IncLogan Resources LtdLondon Mining plc Lornex Capital IncLovozersky GOK

COMPANIES ACTIVE ABOVE 60°N (RED INDICATES ACTIVITY IN MORE THAN ONE COUNTRY)



Lukoil OAO Luxwing Holdings LtdMackenzie Mountain Metals IncMagnus Minerals LtdMangazeya Mining Ltd Manson Creek Resources LtdMawson Resources Ltd McEwen Mining Inc Mega Precious Metals IncMelkior Resources IncMetallica Mining ASA Metals Creek Resources CorpMillrock Resources IncMindat ResearchMineral Exploration Network Ltd Miranda Gold Corp MMC Norilsk Nickel OJSC MMG LtdMonster Mining CorpMountain Island Exploration LtdMPH Ventures CorpMustavaaran Kaivos Oy NA Potash Developments IncNaughty Blair LawrenceNetwork Exploration LtdNew Dimension Resources LtdNew Nadina Explorations LtdNew Pacific Metals CorpNewera Resources Ltd Newmont Mining CorpNexGen Energy LtdNickel Mountain Group AB Nighthawk Gold CorpNordic Graphite Ltd Nordic Iron Ore AB Nordic Mines AB Nordic Mining ASA Norrliden Mining AB Norsk Hydro ASA Nortec Minerals CorpNorth American Nickel Inc North American Tungsten Corp LtdNorth Arrow Minerals IncNorth Country Gold CorpNorth Fork Resources Pty Ltd North Sur Resources IncNorthern Dynasty Minerals Ltd Northern Freegold Resources LtdNorthern Iron Ltd Northern Shield Resources Inc Northern Tiger Resources IncNorthland Resources SANorthquest LtdNorton Gold Fields Ltd

NovaGold Resources Inc Novolipetsk Steel OJSC NunaMinerals ASNunavik Nickel Mines LtdNunavut Tunngavik IncNussir ASA Nycon Resources Inc Nyrstar NVOceanic Iron Ore CorpO'Connor Lake Mines LtdOlivut Resources LtdOlkon JSC Opawica Explorations IncOre Exploration AB Orex Minerals Inc Osisko Mining Corp Outokumpu Oyj Overland Resources LtdOvoca Gold plc Pacific Bay Minerals LtdPacific North West Capital Corp Pacific Ridge Exploration LtdPanarc Resources LtdPanoramic Resources Ltd Pasinex Resources LtdPeregrine Diamonds LtdPerlis Enterprise IncPetropavlovsk plc Pine Cliff Energy LtdPitchblack Resources LtdPlan B Minerals Corp Platina Resources Ltd Platinum Group Metals LtdPlayfair Mining LtdPolymetal International plc Polyus Gold International Ltd Precipitate Gold CorpPromithian Global Ventures IncProspector Resources CorpProsperity Goldfields CorpPure Energy Minerals LtdPure Nickel IncPure Nickel Inc Rackla Metals IncRam Resources Ltd Rana Gruber AS Range Minerals Corp Rare Earth Minerals plc Redtail Metals CorpRegent Ventures LtdRenaissance Minerals Ltd Renova GroupResolve Ventures IncRhyolite Resources Ltd

Rio Tinto LtdRockhaven Resources LtdRosander Mining Co Ross River Minerals IncRoyal Pretoria Gold Ltd Ryan Gold CorpRyanwood Exploration IncSabina Gold & Silver CorpSanatana Resources IncSavant Explorations LtdScavo Resources CorpScout Exploration IncSeabridge Gold IncSenator Minerals Inc Shear Diamonds LtdShoshoni Gold LtdSienna Resources IncSilver Bear Resources Inc Silver Predator CorpSilver Pursuit Resources LtdSilver Range Resources LtdSilver Standard Resources IncSilverado Gold Mines Ltd Slave Lake Diamond CorpSnowfield Development CorpSolid Resources LtdSolomon Resources LtdSotkamo Silver AB Stakeholder Gold CorpStatus LLC Stina Resources LtdStore Norske Spitsbergen ASStornoway Diamond CorpStrategic Metals LtdStrongbow Exploration IncStroshein RobertSumitomo Metal Mining CoSunrise Resources plc Susumanzoloto OJSC Taku Gold CorpTalga Resources Ltd Talmora Diamond IncTalvivaara Mining Co (Administration) Tamerlane Ventures IncTanbreez Mining Greenland AS Tanqueray Resources LtdTaranis Resources Inc Tarsis Resources LtdTasman Metals Ltd Teck Resources LtdTerraco Gold CorpTerraX Minerals IncTertiary Minerals plc Teryl Resources Corp

Thompson Creek Metals CoThunderstruck Resources LtdTigers Realm Coal Ltd Tiktaliik Gold CorpTintina Mines LtdTM Resources AB TMAC Resources IncTNR Gold CorpTrans Atlantic Metals AG Transition Metals CorpTroymet Exploration CorpTrue North Gems IncTrue North Nickel IncTushtena Resources Inc Twyford Ventures IncTyhee Gold CorpUC RUSAL plc Ucore Rare Metals IncUltra Resources CorpUral Mining and Metallurgical Co Uravan Minerals IncUr-Energy IncURU Metals LtdUsibelli Coal Mine IncVeris Gold CorpVictoria Gold CorpViking Gold Exploration IncVilhelmina Mineral AB Virginia Mines IncVorkutaugol JSC Voyager Gold CorpVuorokas Oy War Eagle Mining Company IncWellgreen Platinum LtdWest Melville Metals IncWestern Copper and Gold CorpWestern Troy Capital Resources IncWestMountain Gold Inc Whetstone Minerals Ltd White Pine Resources IncWiking Mineral AB Wildwood Exploration IncWolverine Minerals CorpWPC Resources IncXinXing Ductile Iron Pipes CoYankee Hat Minerals LtdYara International ASA YES Exploration Syndicate IncYukon Zinc CorpYunnan Chihong Zinc & Germanium CoZapadnaya Gold Mining Ltd Zazu Metals Corp Zinccorp Resources Inc

COMPANIES LIST (CONTINUED)


Special Report: Cash Costs for Base Metals MiningWith base metals prices falling, the industry has responded with a reduction

in cash operating costs

Cash costs for the major base metals declined in 2013 from an apparent cyclical peak in 2012. For copper operations, onsite mining and milling cash costs fell 3.1% to an average of US$33.5/t of ore mined and milled. Zinc operations saw average mine and mill costs fall 1.6% to US$60.4/t. Lead costs fell 0.4% to US$65.8/t, while nickel cash costs were down 2.5% to US$117.5/t of ore mined and milled.

ONSITE MINE & MILL CASH COSTS (US$/t Ore)

2013 2012 Change (%)

Copper 33.53 34.61 -3.1

Zinc 60.42 61.38 -1.6

Lead 65.77 66.00 -0.4

Nickel 117.50 120.55 -2.5

COPPER CASH COSTS (2013)

Cost (US c/lb) Share (%)

Labour 40.9 24.2

Energy 28.4 16.8

Reagents 16.9 10.0

Other onsite 55.6 33.0

Offsite 26.9 15.9

Total 168.8 100.0

Note: Copper cost is pro-rata across all mine products, no credits'Offsite' comprises treatment, refining and shipping.

This reduction in cash costs is largely attributable to lower diesel prices and a fall in the cost of electricity. These reductions more than offset a relatively modest increase in labour costs in most producer countries.

These changes are consistent with a decline in producer country exchange rates against the US dollar, with the only significant exceptions being Mexico, Sweden and the Eurozone. For copper operations, lower acid prices resulted in a significant fall in SX-EW costs. The table above shows the average cost composition for copper mines in 2013.

COPPER COST CHANGES 2000-2013 (c/lb Cu)

020406080

100120140160180

2000 2002 2004 2006 2008 2010 2012

OffsiteOther OnsiteReagentsEnergyLabour

The chart above illustrates the movement in five cost drivers since 2000. Offsite costs, such as smelting and refining, have remained relatively stable compared with the onsite costs of energy and labour

costs. Other onsite costs (which include machinery, spares, explosives and tyres) increased quite rapidly until the credit crunch of 2008, as did acid prices.

Costs in terms of metal produced are more ambiguous because the effects of offsite smelting, refining costs and product shipping costs have to be taken into account, plus changes in metal prices and the effects of by-product credits. Even for mines producing only one product, cost movements will not necessarily change with underlying onsite production costs, since changes in grades can push costs in either direction, even before considering changes in offsite costs.

‘Normal’ costing is used to compare cash costs across single and multi-product mines. In this method, mine and mill costs are assigned pro-rata to each mine product according to its value to the mine owner. This means that each metal bears its pro-rata share of onsite mine and mill costs, plus the cost of treatment, refining and shipping for that metal.

As a result of incorporating the value of metal in the cost calculation, the apparent cost of metal will depend on the price of each mine product. This explains why the pro-rata cost of producing copper from multi-product mines in recent years has increased along with the copper price, however increased precious metals prices have had the opposite effect on copper costs. This confuses the cash cost picture.

Taking pro-rata cash costs for the major base metals in 2013, copper metal costs fell only 1.0% to 168.8c/lb, even though copper mine and mill costs were down 3.1% in terms of the copper ore. This is explained by the increase in treatment and refining costs for copper, and the relative increase in the pro-rata weight for copper at multi-product mines. (Note that while LME copper prices were down 7.3% last year, copper's main co-products, gold and silver, saw even bigger price falls in 2013, which means that copper's share in mine costs actually increased.)

This pro-rata costing effect was even more pronounced with zinc and lead, where metal costs rose 3.0% for zinc metal (to 61.9c/lb) and 6.1% for lead (to 63.3c/lb), despite modest reductions in onsite mine and mill costs for the ore. Reductions in treatment costs for these two metals were offset by increases in pro-rata costs because lead prices actually rose by 4.0% last year, and the 1.9% fall in zinc prices was significantly less than the falls in copper, silver and gold prices.

PRO RATA CASH COSTS (USc/lb)

2013 2012 Change (%)

Copper 168.8 170.4 -1.0

Zinc 61.9 60.1 3.0

Lead 63.3 59.7 6.1

Nickel 569.3 641.9 -11.3

The price of nickel fell by almost as much as gold last year (down 14.3% on the LME). As a result,


Special Report: Cash Costs for Base Metals Miningcontinued

nickel costs fell 11.3% in 2013 (to 569c/lb) despite onsite mine and mill costs falling only 2.5%.

Costs are normally presented after taking into account by-product credits. This approach raises more interpretational problems because adding back all available credits will result in many mines having negative costs. Nevertheless, this 100% crediting assumption is becoming more common, so this method is applied below (all mine costs are allocated to the metal of interest, and then 100% of the value of all co-product and by-product metal is deducted).

For cash costs in 2013, a ‘crediting’ calculation leaves averages of 122.6c/lb for copper, -11.9c/lb for zinc, -85.8c/lb for lead and 413c/lb for nickel. These figures compare with cash costs in 2012 (after 100% co- and by-product crediting) of 107.9c/lb for copper, -31.8c/lb zinc, -145c/lb lead and 463.1c/lb nickel.

CASH COSTS AFTER 100% CREDITS (USc/lb)

2013 2012 Change (%)

Copper 122.6 107.9 13.6

Zinc -11.9 -31.8 62.7

Lead -85.8 -145.8 41.2

Nickel 413.0 463.1 -10.8

These credit-included cash costs increased last year for copper, zinc and lead because of the significant decline in silver and gold prices, which have

supported base-metals miners in recent years. Nickel costs fell last year as the metal gets far less

benefit from by-product ‘crediting’; nickel laterites have only minor credits available from cobalt, and over 22% of nickel production in the Minecost sample is ferronickel, which earns no credits at all. Nevertheless, since the price of all the principal nickel by-product metals (copper, cobalt and PGMs) fell last year, lower credits for the metal reinforced the underlying downward trend in onsite nickel mine and mill costs.

During the early years of the decade, such ‘crediting’ reduced net copper cash costs by around 50% of the total. When the gold price increased significantly in the middle of the last decade, the value of credits increased so much that copper net costs were zero, or negative, by 2007.

This trend was reversed in 2008, and by 2013 the benefit of by-product credits to copper production had more or less returned to the levels seen ten years ago. The way prices are looking in 2014, this trend can be expected to hold steady.

The data in this Special Report was provided by minecost.com, which maintains detailed engineering-based financial models for over 300 mines, which produce at least 85% of western world base-metals production.

CASH COST DATA IS ALSO AVAILABLE FOR GOLD MINES ON SNL (2013, US$/oz)


Special Report: Regional ActivityAlthough Asia dominates metals production, Latin America remains an important

target for mine development

Only 95 new projects, with a total anticipated capital expenditure of US$38 billion, were registered last year in the development-pipeline database of Stockholm-based Raw Materials Group (RMG, part of SNL Metals & Mining). This amount contrasts with the 113 projects, valued at US$47 billion, recorded in 2012, and the peak year of 2010 when 167 projects worth US$115 billion were recorded.

By the end of last year, RMG’s database contained 1,307 projects where a development investment has been published. The database contains a further 3,400 projects where news has been received during the past eight years but for which no investment estimates have been made (most of these are at the conceptual stage). The ‘committed’ projects have total committed capital expenditure of almost US$791 billion (see table, p42), which compares with the 1,282 development projects in 2012 that had an investment total of under US$735 billion.

These recorded development projects are fairly evenly distributed around the world but almost half of the total capex commitment comes from projects located in the Americas. The RMG database contains project details from the largest 700 mining companies but these companies only account for a combined 40% of the world’s mined metal, by value. Much of the remaining output comes from countries where transparency, especially with regard to investment plans, is low. As a result, the project data reported here for Asia is almost certainly an underestimate.

Because of the financial crisis and depressed metals prices, the mining industry’s investment in new projects has declined in recent years. Nevertheless, the committed capital expenditure in the development pipeline has continued to grow. One reason for this is the tendency for the expected development expenditure to rise as projects move up the development pipeline, for example from feasibility to the construction phase.

Many of the industry’s largest gold and copper projects reported higher-than-expected capex last year. For example, during 2013 the 13 largest copper projects (individual capex of over US$4 billion) increased their capex expectations by a total of US$19 billion (54% above the level of 2012). The 11 leading gold projects (those having individual capex expectations of over US$2 billion) reported a US$7 billion increase in capex during 2013 (an increase of 60%).

As reported in the previous edition of State of the Market, the number and value of projects at the feasibility stage have increased strongly over the past two years, accounting for 24% of the total projects and over 30% of the total development investment (see chart p42). This trend was to be expected given the high numbers of new projects announced in 2010 and 2011.

On the other hand, the number of projects at the conceptual and pre-feasibility stages has decreased

recently. This reflects declining investment appetite and increasing corporate financial problems. The concern is that this decline at the early stage of project development might mean that there will not be enough projects to satisfy metals demand in a few years.

The expenditure on projects at the construction stage fell 17% in 2013 to below US$68 billion (from almost US$82 billion in 2012) at an average cost of US$787 million. This is 15% lower than the average cost in 2012, and is close to the US$645 million average of 2011. Behind these numbers are several high-cost projects that are being put on hold or went into production.

REGIONAL CONTRIBUTIONSLatin America maintained its top position in 2013 in terms of the number of projects and the capital expenditure commitments for the 1,307 development projects with capex estimations. The region also continues to contribute a significant share of the world’s metals production (see tables, p44).

Although lower than the peak of 32% achieved in 2010, Latin America had a 29% share of committed development capital expenditure last year. In absolute terms, development capex in Latin America has risen from the US$210 billion earmarked in 2012 to US$229 billion committed in 2013.

The SNL database records 293 committed development projects in Latin America at an average project investment of US$780 million. This is the highest average of all regions (it contrasts with an average of only US$572 million in Australasia), and is a result of the large number of very large projects in the continent (in 2013 there were 62 projects in Latin America with capital expenditure of more than US$1 billion).

Committed development projects in North America accounted for 20% of the total projected capex last year, with Australasia contributing 15% of the total. Africa and Europe are both close to Australasia in activity (14% and 13%, respectively), while Asia has dropped below 10% for the first time in five years.

Project investment in North America (recorded in the database as the US and Canada, with Mexico being included under Latin America) has risen to 20% from a 15% contribution in 2010. In absolute terms, the continent accounted for US$161 billion in 2013, some US$15 billion higher than registered in 2012, and a significant growth compared with the total of US$77 billion in 2009.

On a national basis, Canada has taken over as the leading location for development projects, outperforming Australia in 2013 with committed capex of US$117 billion (a growth of 12%). The main reason behind Australia’s decline to second place is the falling price of iron ore. This metal is very important to the Australian mining sector but Canada has a much wider mix of projects, including gold and base metal


Special Report: Regional Activitycontinued

projects that are among the world’s largest developments (including five iron-ore projects, two copper projects and 12 gold projects in the top-20 rankings of each commodity).

Australasia’s development investment fell almost US$5 billion to barely US$116 billion in 2013, reducing the region’s share of the world total to 15%, compared with 16% in 2012. Within this amount, Australia’s share of mining investment declined 5%. However, although Australia fell from top place in terms of the value of its overall investments, it remains the leading country in terms of the number of projects in the pipeline. Iron-ore projects continue to dominate the country’s development programme, accounting for nine of the top 30 iron-ore projects worldwide, with total investment of US$33 billion.

Africa’s share of total investment remained at 14% in 2013, but the total amount committed increased to over US$110 billion, with an average capex of US$549 million. The SNL database registers 26 projects in the region with a capex commitment of greater than US$1 billion in 2013, compared with 23 projects in 2012. These are mostly iron-ore projects, led by Rio Tinto’s Simandou project in Guinea with an estimated capex of US$10 billion.

Europe (including all of Russia in terms of the database records) showed a positive trend between 2012 and 2013, with its share of the total development capex increasing from 10% to 13%. Much of this European improvement was attributed to a jump of 53% in Russian total investment commitments, which reached US$74 billion in 2013.

The main reason for the increased Russian investment is the announcement of three high-cost projects last year. These comprise the Oroyek poly-metallic deposit, with a preliminary development cost of US$5 billion (this was announced by the Russian government but has not yet been put up for auction); the Elanskoye nickel deposit, owned by Norilsk Nickel, which has around US$3.3 billion in capital expenditure; and Intergeo’s US$2.3 billion Kingashsky nickel- copper-PGM project. Most of the projects in Russia are financed by local investors, and the share of funding from abroad is minimal.

DEVELOPMENTS: COMMITTED CAPITAL EXPENDITURE

(US$ billion) 2009 2010 2011 2012 2013

Conceptual 83 147 172 110 130

Prefeasibility 92 129 167 159 158

Feasibility 135 103 113 204 241

Construction 50 57 66 82 68

Operating, exp/plans 73 93 125 147 160

Susp, restart/constr 25 27 27 21 22

Closed, reopen/plans 6 6 6 12 13

Total 465 562 675 735 791

PROJECT CAPEX (US$ billion)

5

10

15

20

25

30

4

54

104

154

204

254

2009 2010 2011 2012 2013

Conceptual Prefeasibility Feasibility

Construction

Right-hand scale:

Operating, exp/plans

Susp, restart/constr Closed, reopen/plans

PROJECT (Numbers)

0

20

40

60

80

100

120

140

160

150

200

250

300

350

400

2009 2010 2011 2012 2013

Conceptual Prefeasibility

Feasibility

ConstructionRight-hand scale:

Operating, exp/plans

Susp, restart/constr

Closed, reopen/plans

DEVELOPMENT PROJECTS (Committed)

Capex (US$ billion) 2009 % 2010 % 2011 % 2012 % 2013 %

Africa 68 15 79 14 99 15 106 14 110 14

Asia 65 14 73 13 73 11 75 10 71 9

Europe 50 11 62 11 75 11 77 10 103 13

Latin America 134 29 180 32 192 28 210 29 229 29

North America 77 17 86 15 124 18 146 20 161 20

Australasia 71 15 81 14 113 17 121 16 116 15

Total Capex 465 562 675 735 791


Asia reached an investment peak in 2009 (14% of the world total) and its world share has been falling for the past four years (accounting for only 9% in 2013). The region has a total of 209 development projects in the SNL database, 22 of which have a capex of more than US$1 billion, led by the disputed Tampkana copper project in the Philippines (US$5.2 billion). The region’s project-investment average is the lowest of all regions at US$342 million, which is less than half the average in Latin America.

The data reported for Asia is far less certain than elsewhere, and the investment figure for China is most certainly an underestimate. Many of the projects are run by state-owned companies and details are sparse. However, Chinese projects are mostly small, with an average project cost of just US$193 million.

PRODUCTION TRENDSThe production tables on p44 show mined output for five metals, separated over the past four years into six regions.

The world production of zinc was little changed last year at 13.6Mt but the output of gold (2,950Moz), copper (17.9Mt), lead (5.3Mt) and nickel (1.85Mt) were all 5.4-6.5% higher than in 2012.

Indeed, with the exception of copper in 2011, the output of gold, copper, zinc, lead and nickel has risen each year for the past three years. Last year’s production, compared with world output in 2010, was higher by almost 16% for gold, 11% for copper, 10% for zinc, 26% for lead and 22% for nickel.

Led by Chinese output, Asia dominates this burgeoning global production, being the leading continent in 2013 for gold (26% of the world output), zinc (48%), lead (60%) and nickel (40%). The continent also produced over 20% of the world’s copper, where it is in second place to Latin America (which accounts for 45% of the global total).

Since 2010, Asia’s zinc production has risen by over 21%, its gold production by almost 15% and its copper production by 14%. The latter three year average incorporates year-on-year increases of 9.5% and 7.1% in the past two years, after a decline in output during 2011. Even greater three-year increases have been achieved for lead (up almost 52%) and nickel (over 62%).


DEVELOPMENT REGION: CAPEX (US$ million)

0 50,000 100,000 150,000 200,000 250,000

2009

2010

2011

2012

2013

Australasia North America Latin America

Europe Asia Africa

DEVELOPMENT REGION: PROJECTS (Number)

0 100 200 300 400

2009

2010

2011

2012

2013

Australasia North America Latin America

Europe Asia Africa



PERCENTAGE PRODUCTION CHANGES

GOLD

Region 2011 vs 2010 (%) 2012 vs 2011 (%) 2013 vs 2012 (%)

Africa 5.7 -2.2 2.0

Asia 5.5 3.1 5.5

Europe -4.9 6.9 16.2

Latin America 4.1 0.5 2.0

North America 3.5 -1.0 3.7

Australasia -3.0 -2.0 3.4

Total 2.7 6.9 5.4

COPPER

Region 2011 vs 2010 (%) 2012 vs 2011 (%) 2013 vs 2012 (%)

Africa 6.8 6.8 24.9

Asia -3.0 9.5 7.1

Europe 1.7 3.6 1.8

Latin America -0.6 4.1 6.6

North America 4.3 2.6 5.9

Australasia 5.6 -4.2 3.1

Total -0.8 4.8 6.5

ZINC

Region 2011 vs 2010 (%) 2012 vs 2011 (%) 2013 vs 2012 (%)

Africa -5.0 4.0 7.0

Asia 11.3 12.9 -3.7

Europe 4.0 -2.1 -1.7


North America -1.3 -0.1 -14.0

Australasia 2.0 1.3 -5.2

Total 4.4 5.1 0.0

LEAD

Region 2011 vs 2010 (%) 2012 vs 2011 (%) 2013 vs 2012 (%)

Africa 3.1 -9.0 0.0

Asia 25.3 11.6 9.0

Europe 13.7 1.6 0.9


North America -7.5 1.4 -10.6

Australasia -5.9 -7.7 9.8

Total 10.6 7.6 6.0

NICKEL

Region 2011 vs 2010 (%) 2012 vs 2011 (%) 2013 vs 2012 (%)

Africa 0.1 5.3 21.5

Asia 37.6 6.9 10.2

Europe 4.6 -2.4 -5.6

Latin America 31.4 30.0 -4.7

North America 38.6 -6.9 10.0

Australasia 14.3 10.2 1.9

Total 6.5 8.4 5.8

North America Latin America

TotalRight scale:

Left scale:Africa Asia Australasia Europe

2,500

2,650

2,800

2,950

3,100

200

350

500

650

800

2010 2011 2012 2013

16,000

16,500

17,000

17,500

18,000

1,000

3,250

5,500

7,750

10,000

2010 2011 2012 2013

12,000

12,500

13,000

13,500

14,000

100

1,825

3,550

5,275

7,000

2010 2011 2012 2013

1,500

1,600

1,700

1,800

1,900

0

200

400

600

800

2010 2011 2012 2013

REGIONAL METALS PRODUCTION

GOLD (Moz)

COPPER (‘000t)

ZINC (‘000t)

LEAD (‘000t)

NICKEL (‘000t)

4,000

4,450

4,900

5,350

5,800

50

1,050

2,050

3,050

4,050

2010 2011 2012 2013


Special Report: Regional ActivitycontinuedDIG DEEPER WITH OUR

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Documents

SNL Metals & Mining - State of the Market Mining and Finance Report