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Evolution Mining sees vast gold potential at Red Lake

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Australian mine operator says new resource estimate and gold prospects should add decades of mine life

The Red Lake Mine complex has plenty more gold to be discovered, said its new Australian owners.

“We have not scratched the surface of Red Lake’s full potential,” said Evolution Mining’s chief operating officer Bob Fulker in a Sept. 1 webcast to Evolution’s investors, about recent discoveries that offer opportunity to dramatically increases production while maintaining a longer mine life.

Senior executives of the Sydney-headquartered mining company talked of the open-ended potential of the three-mine operation and the numerous exploration opportunities to grow the gold base inside their 457-square-kilometre property.

Fulker said Evolution’s aspirational goal of ratcheting up annual production to 200,000 ounces of gold may be just the starting point. 

There’s enough gold in the system, he said, to make a strong case to further boost production to 300,000 to 500,000 ounces annually over the next five years.

Sydney-based Evolution, the six-month-old operators of the complex, have brought fresh eyes in reintrepreting the resource base within the 70-year-old northwestern Ontario mining camp.

The company knew the historic gold camp still had loads of potential where they were in the tire-kicking, due diligence phase last year in considering whether to acquire the complex being dangled by Newmont.

What they didn’t expect was to find new vast resources close to existing mine workings that were virtually untouched.

Their confidence is backstopped by a new mineral estimate, posted in August, outlining an 11-million-ounce gold resource, grading at 7.1 grams per ounces in 48.1 million tonnes, with the strong possibility of discovering a lot more.

“Red Lake is located in one of the world’s greatest gold mining camps and we’re focused on making the most of this address,” said Fulker.

There’s also the possibility of gold potential on a property-wide basis that they fully expect to make a major investment in either upgrading or expanding milling capacity at Red Lake in the near future. The new resource estimate is due out in early 2021.

Until last month’s resource update, the miner had not generated much in the way of news flow since announcing last fall it was acquiring the three-mine complex from Newmont. The sale was finalized at the end of March.

Evolution viewed Red Lake an an undercapitalized asset in a rich high-grade environment that was ripe for a turnaround with some intelligently invested capital. The company has committed to investing US$100 million in operations, moslty in the form of new technology.

Executive chair Jake Klein said Red Lake had a rapidly closing shelf life due to a lack of investment in development and operation by the previous ownership.

“The mine had been depleting resources and reserves way too quickly and was really in harvesting mode and was heading toward closure.”

Evolution has committed drilling 100,000 metres every year and budgeting US$50 million annually over the three years to restock the gold pipeline prospects to the point of where they are constrained by mill capacity.

Some of the “low hanging fruit,” according to Fulker and Glen Masterman, vice-president of discovery and business development, is a new resource in the Upper Campbell area of the mine with 4.3 million ounces, grading 10.5 grams per tonne that begins at the surface and extends down 1,200 metres.

Upper Campbell has them contemplating a surface decline – northeast of the Reid Shaft and Campbell mill – or a potential open pit to extract those resources, and also access the nearby H-G Young prospect to the northwest, which has the potential to grow beyond its current 400,000-ounce resource.

“We’re investigating all possibilities to enable Red Lake to deliver for a long time to come,” said Fulker, with a mine life that lasts decades, not years.

Evolution inherited a massive historic drill database consisting of 47,000 holes from seven million metres of drilling and six million samples. They went back to the basics in reinterpreting reams of information to present a big picture, holistic, geological framework of the whole operation that can be viewed from a single consolidated database for the first time.

With a better handle on the geological setting, Masterman believes there are future high-grade discoveries to be made in their step-out drilling program.

Masterman said there “incredible, well mineralized” and “undertested” corridors in the hanging wall of the mine trends at Red Lake and Campbell. These will be the subject of their upcoming drill programs to target and drill extensions of these corridors.

“I believe the opportunity for us at Red Lake is a great example of where the whole is greater than the sum of the individual parts.”

“We’ve been able to bring a different lens and approach to the mineral resource solution.”

The new gold resource resolves what had been a very uncertain outlook at Red Lake, said Amber Adams, Red Lake’s interim general manager.

 “We have a very bright future ahead of us, not just employees but the community as a whole,” said the 16-year veteran at Red Lake, who believes Evolution is on the path of “restoring the mine to its former glory days.”

The culture shift and adopted best practices have been well-received by the predominantly local workforce, have opened up lines of communication, and have employees excited about the future.

Some workforce downsizing was carried out this summer with the reduction of 120 full-time positions, representing a savings of AUD$12 million.

They’ve also reduced the number of mine fronts to six areas, closer to existing processing facilities; increased monthy development rates from 600 metres to 1,000 metres; made improvements to debottleneck material movement systems; optimize haulage routes to speed the flow of ore to the mill; and seen Evolution make investments in a new fleet of large capacity vehicles.

 

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Greater Vernon businesses honoured for excellence – Vernon Morning Star

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Businesses in the Vernon area received some well-earned accolades last week.

The Greater Vernon Chamber of Commerce announced its 2020 Business Excellence Award winners Friday night, with awards handed out in 12 categories during a virtual gala.

“It was an exciting evening as the winner in each category was announced, and this year was truly a celebration of entrepreneurial spirit, vision and thinking outside of the box as our businesses and non-profit agencies navigate the challenges created by the pandemic,” said Krystin Kempton, Greater Vernon Chamber president.

The winners of the 2020 Business Excellence Awards are:

  • Business of the Year sponsored by Valley First: The Med

(Honourable mention: Intermezzo Restaurant & Wine Cellar, Okanagan Spirits Craft Distillery)

  • People’s Choice Award sponsored by Total Restoration Services: Turning Points Collaborative Society

(Honourable mention: Sterling Centre Remedy’s RX Pharmacy, J.C. Tompson Construction, The Bridge Educational Society)

  • Small Business of the Year sponsored by Community Futures: Anna’s Vitamins Plus

(Honourable mention: Home for Dinner, Kalamalka General Store, Ritual Barbershop)

  • New Business of the Year sponsored by MNP LLP: Fill – Vernon’s Refill Store

(Honourable mention: Bottle None, Boarding House Cafe, Cheese on Wheels)

  • Young Entrepreneur of the Year sponsored by Nixon Wenger Lawyers: Alysia Lor-Knill, Teassential

(Honourable mention: Mitchel Derksen, Numu Consulting; Elmaz Wilder, Ritual Barbershop; Kayley Letendre, Sugarbees Ice Cream Company)

  • Businessperson of the Year sponsored by Kal Tire: Tony Dyck, Okanagan Spirits Craft Distillery

(Honourable mention: Brad Pelletier, Predator Ridge Resort; Richard Finn, Wayside; Joe Pearson, Remax)

  • Employer of the Year sponsored by City of Vernon: Sproing Creative

(Honourable mention: Community Futures North Okanagan, Valley First, The Home Depot)

  • Customer Service Award sponsored by Okanagan Spring Brewery: Sterling Centre Remedy’s RX Pharmacy

(Honourable mention: Intermezzo Restaurant & Wine Cellar, Vernon Teach and Learn, Olive Us Oil & Vinegar Tasting Room, Okanagan Restoration)

  • Manufacturer of the Year sponsored by Tekmar Control Systems: UnderGround Kombucha

(Honourable mention: Kekuli Bay Cabinetry, Summit Tiny Homes, Planet Bee Honey Farm)

  • Non-Profit Excellence Award sponsored by Community Foundation North Okanagan: Social Planning Council North Okanagan

(Honourable mention: Venture Training, Greater Vernon Museum & Archives, North Okanagan Valley Gleaners)

  • Community Leader of the Year sponsored by De Vine Vintners: Okanagan Spirits Craft Distillery

(Honourable mention: The Fig Bistro, Lake City Casino, Vernon Teach and Learn)

  • Innovator of the Year sponsored by TD Bank: The Med

(Honourable mention: Caufields Engraving, Turning Points Collaborative Society, Martens Holdings)

The winners will be invited to a private event to receive their awards in person.

With the People’s Choice Award, partial proceeds from online voting will establish a scholarship for a local business student while other proceeds will fund Chamber initiatives to support local business.

The gala featured video messages from Ken Holland, general manager of the Edmonton Oilers; and Jillian Harris, founder and creative director of Jillian Harris Design, former Bachelorette and co-host of Love It Or List It Vancouver. There was also a live performance by Andrew Allen.


@VernonNews
newsroom@vernonmorningstar.com

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Supreme Announces Business Model and Name Change

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One of North America’s leading steel solution providers returns to its roots

ACHESON, AB, Oct. 27, 2020 /CNW/ – Supreme is proud to announce a major change to our business model and to simultaneously unveil an exciting refresh of our operating name and brand.

Since 1972, we have been transforming landscapes across western Canada and the United States with major projects like the Rainier Tower in Seattle, the Port Mann Bridge in Vancouver and the Diavik diamond mine in the Northwest Territories, to name a few.

Today we honour our history, returning to the roots set down by company founders John and Sally Leder.

Our company is rolling together the brands Supreme Group, Canron, Midwest Constructors and Supreme Industrial.

Going forward we will be known as Supreme Steel LP.

Along with our brand and name change, our services have been refined.

Supreme Steel will no longer offer large scope general contracting or multi-disciplinary module construction services. Structural steel and bridges have built the company’s foundation as a focused leading steel solution provider, and we are recommitting to these offerings.

Over the past 50 years, our family-run company has developed expertise in fabricating and constructing extraordinary steel projects. From bridges to skyscrapers, maintenance work to plant modifications, and potash headframes to barges Supreme is your complex steel solution provider. Our large facilities and strong geographical diversity allows us to provide these services from coast-to-coast.

Please visit our new website www.supremesteel.com to view our brand story and to read more about our offerings.

Exceptional people. Enduring relationships. Extraordinary solutions

SOURCE Supreme Steel

For further information: Media Contact: Rhandi Berndt, Marketing & Communication Coordinator, Supreme Steel, [email protected]

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AIG to depart from life & retirement business

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“AIG’s executive management and board believe a simplified corporate structure will unlock significant value for shareholders and other stakeholders,” a company release said. “Although no decisions have been made as to how to achieve a full separation, the board’s intent is to accomplish it in a way that maximizes shareholder value and establishes two independent, market leading companies.”

“Over the last three years, we have taken significant action to de-risk AIG and position the company for profitable growth, including fortifying general insurance, diversifying life & retirement, significantly strengthening AIG’s capital and liquidity position, and building a world-class team,” said outgoing AIG CEO Brian Duperreault in a statement. “This foundational work has positioned AIG to pursue a separation of life & retirement enabling both companies to prosper as stand-alone entities.” 

Read more: AIG appoints Peter Zaffino as CEO

AIG’s decision to separate from the life & retirement business comes shortly after it named Peter Zaffino to serve as the company’s newest chief executive officer, succeeding current CEO Duperreault. Duperreault will transition into a new role as executive chairman of the company.

“Across AIG, we have made significant progress executing on our strategy to deliver value for our clients, distribution partners, shareholders and other stakeholders,” commented CEO-elect Zaffino on the decision. “Our businesses can be further strengthened by separating life & retirement from AIG, which we believe will enable each entity to achieve a more appropriate and sustainable valuation.”

Coinciding with the major announcement, AIG also revealed its Q3 2020 catastrophe loss estimates. The company’s catastrophe loss estimates for the third quarter, net of reinsurance, totaled US$790 million (before tax). Of that US$790 million, there was US$185 million of estimated catastrophe losses for claims related to COVID-19 – principally in AIG’s travel, event cancellation, trade credit, property, agriculture, and casualty books of business.

AIG also announced the results of its annual actuarial assumption update for the life & retirement and legacy segments. This year saw lower interest rate assumptions, including a decrease in the expected 10 year forward 10-year Treasury rate to approximately 2.8%.

The company recorded a third quarter 2020 charge of US$7 million, after-tax (US$9 million pre-tax), to net income attributable to AIG common shareholders, representing a charge of US$22 million, pre-tax, in the life & retirement segment and a benefit of US$13 million, pre-tax, in the legacy segment.

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