"We are open to working anywhere in the US where there are hard rock, metal, or non-metal, underground mines."

Keith Jones

GENERAL MANAGER, SMALL MINE DEVELOPMENT (SMD)

March 24, 2023

Can you expand on the work Small Mine Development (SMD) does at the Turquoise Ridge mine?

Our contract at Turquoise Ridge started with high-capacity ground support installation at the new, 2250 third shaft station. This excavation was in place before the shaft reaching it. After completing this work, we started rehabilitation and installation of high-capacity ground support in older workings. We then expanded into underground infrastructure development for the third shaft which is being sunk by Thyssen Mining and is coming online very soon.

What is your involvement at i-80 Gold Corp’s Granite Creek mine?

SMD is doing the contract mining at the Granite Creek mine. We are involved in the development work required as we extend the decline deeper and develop new levels, and then we also do the production mining extracting ore, and backfilling as necessary. We are also doing the development project at the Cove project. This is an exploration decline that will allow for significant development drilling from underground. We started earthworks in February 2022, and expect the exploration declined to be finished in Q1 2023.

What role do contractors like SMD play to ensure safety at mine sites?

Safety is everybody's responsibility. We have policies and procedures in place that everybody must follow, and we provide the training, tools, and equipment to ensure that the work gets done safely. We are also participating in the Safety Journey program developed by Newmont, and this year, have incorporated it into our new hire training as a module. Due to the scarcity of labourers, we are constantly hiring new people and providing them with orientation courses and specific on-site task and equipment training.

What trends do you see in automation and electrification in the mining sector?

I believe Nevada companies will be late adopters of these technologies as they can be very expensive and major clients want quality contractors, but also demand fair pricing. In the contracting space, it is difficult to sell these technologies as the value to the client comes with a premium. There are still many unknowns with electrification technologies, and although we support electrification and have operated some electric equipment, it comes with a premium that we cannot yet justify in our margin. In many cases, such as at Jervois’ Idaho cobalt project, you also cannot change 100% over to the grid for electric power as there is not enough power to support the entire operation. As an industry, we are at a stage where we cannot mine the battery minerals fast enough to support the electrification trend, and secondly, there is not enough power generation on hand to replace the BTUs that come from fossil fuels.

How achievable are the net zero by 2030 goals?

I do not believe we will be able to flip the switch and transition into electrification that fast. We have a multi-tier challenge where we not only have to manufacture a substantial number of batteries, but also mine the battery metals required for production, and we are no way near supply balancing out with demand. Permitting is still an issue in the global mining industry as it can sometimes take up to 10-15 years just to get the project approval. We are facing the challenge that we do not have nearly enough mines coming online to supply the battery minerals required for the energy transition. For the transition to be successful, the government must let the industry and technology drive it at such a pace that it is sufficient and will work. There must be an openness to all technologies and solutions, including nuclear which is not mentioned in the green energy world, but in my opinion, is one of the solutions to transition from fossil fuels.

What is your outlook for the future of underground mining?

The future for underground mining looks bright as mining is essential for everyday life. As deposits become deeper and more difficult to find, underground mining will flourish. Small Mine Development will continue helping our clients bring their underground projects online and meet their production goals. We are open to working anywhere in the US where there are hard rock, metal, or non-metal, underground mines.

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