Resource World Magazine

S P E C U L AT I O N S L e o n a rd M e l m a n PDAC conference carries on in junior mining bear market W hen it comes to mining conventions and exhibitions, no other annual convention on earth can match the sheer scope of the Prospectors and Developers Association of Canada (PDAC) annual conference held each March in Canada's largest city, Toronto, Ontario. It is no exaggeration to state that for four days each year, the Toronto Convention Centre becomes ground zero for the international mining community. Virtually no other annual mining convention draws crowds to compare with PDAC's attendance of over 30,000 people for each of the past two years. What makes the PDAC get-togethers unique is that so many different segments of the mining world come together at the same time and place. The show comprised two major exhibition areas: the Investors Exchange – Mining Investment Show which plays host to more than 500 mining companies desiring to inform the investing public regarding developments at their various projects and the Trade Show area where approximately 400 companies offering various services and supplies to the mining industry exhibited. The sheer number of exhibitors is only a part of the convention's impact. Throughout the convention's four days, in-depth information is provided from both investment and technical viewpoints. One of the investor highlights is a daylong program, on Sunday, set aside for letter-writer presentations at the Investors Exchange, an event in which your correspondent was privileged to participate. These presentations are well-attended and generate a high level of interest regarding individual companies, the outlook for metals prices and discussions of technical analysis for the investment community. In terms of the highly complex nature of mining itself, an immense variety of technical presentations were offered in the various seminar rooms and display halls; APRIL 2013 so many presentations were held that rooms in both the south and north convention centres had to be utilized. These technical presentations and workshops covered a wide range of topics. Titles included New Concepts for Ore Shoot Targeting; From the Core Barrel to a Resource Estimate; Ni-Cu-PGE deposits in mafic/ultramafic rocks: insights and new discoveries; and Maximizing the Value of Geochemical Data. In addition to these topics and many other technical papers, drill core displays from various mining projects were also displayed at the Core Shack. An additional feature of the PDAC convention is the number of mining publications – including Resource World magazine – offering samples of their product to conventioneers. Many mining magazines are published in foreign languages, again illustrating the international flavour of the gathering. Along with these magazines and newspapers, the Society for Mining, Metallurgy and Exploration (SME) offered a book store containing volumes ranging from highly technical geologic texts to general commentaries on mining evaluation techniques for economic geologists and investors. For each of the past two years, more than 400 mining journalists and media personalities from around the world have obtained media certification and in recent years, well over 100 different nations have sponsored exhibitions and seminars describing the opportunities for mining in their countries. Several countries also presented day-long seminars designed to attract mining capital investments. Included among the more prominent exhibitions were Brazil, Chile and Mexico, thereby indicating the important contributions from the Latin American countries. However, it must also be noted that this year's get-together had a somewhat more cautious feel than previous years. Many junior miners are feeling a financial pinch due to lower share prices combined with tight financial markets and this pinch set in motion several consequences worth noting. First, because of this cash crunch, many plans for expansive (and expensive) drilling programs by junior mining companies have been shelved for the time being. This is having a direct effect on drilling companies, drill supply companies, assay laboratories and even many providers of transportation services, many of whom were exhibiting at PDAC. Next, the number of hospitality suites at important area hotels was considerably diminished from previous years and the quality and quantity of consumables proffered was also smaller. I also noticed that, unlike previous years, many companies including miners and service suppliers failed to offer attention-getting gimmicks such as pens and other souvenirs. The overall impression, then, was of an industry which was enduring a period of some discomfort, but it must also be stated that there was a high degree of confidence that this slowdown is temporary in nature and the good times will roll once again. Though, there was indeed, figuratively speaking, financial 'blood in the streets' in Toronto. My speculation, then, is whether the old saying of "buy when there's blood in the streets" remains true. n This material is taken from sources believed to be reliable and is provided for information only. Any investment decision should be made only after prior consultation with investment professionals. Leonard Melman is a financial and political writer who focuses on issues relating to the resource sector. Mr. Melman lives in Nanoose Bay, British Columbia, Canada and can be reached at lmelman@ shaw.ca www.resourceworld.com 31

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