Resource World Magazine

50 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 2 0 MINING E stablished in 1912, the Association for Mineral Exploration British Columbia (AMEBC) plays an important role by representing, advocating, and promoting the interests of almost 5,000 members engaged in mineral exploration and development in BC. These efforts include such topics as land use, permitting, health and safety, environment and sustainability, Indigenous relations, and social responsibility. In June 2019, Kendra Johnston, P.Geo., was appointed President and CEO of AMEBC. She is a Professional Geologist and mining executive with over 15 years of experience in various facets of mineral exploration and mining. In an interview, Ms Johnston provided insights into the exploration and mining sector in BC and the various challenges it faces in dealing with First Nations issues and other topics. RESOURCE WORLD: What kind of eco- nomic impact does BC's exploration and mining industry have on the province? KENDRA JOHNSTON: BC is one of the leaders in mineral exploration within, not only Canada, but the world. I would say that we are one of two major hubs for mineral exploration – the other being Australia. BC's economic impact from a mineral exploration perspective, is quite significant – not only to the province but nationally as well. We did a survey earlier this year where we found that of the $331 million that was spent in the province on exploration in 2018 (those numbers will be updated at Roundup for 2019) the majority of that money spent in BC stays in the province. Indeed, 97% of those dollars remain in the province so it is quite significant from an economic perspective to the province. Ed Note: Exploration programs utilize more than geologists and drilling companies. Many other people are involved. Exploration camps need to be constructed and oper- ated. Food supplies need to be ordered and brought in. Helicopter companies may need to provide access. ATVs need to be bought and shipped to exploration sites. Bulldozers and backhoes may need to be brought in. Geological and geophysical consultants need to be engaged. Assay labs need to process mineral samples. Laptop computers, com- munications equipment and prospecting supplies need to be acquired. At headquar- ters, explorers need to hire mining lawyers, accountants, auditors, various field manag- ers, investor relations personnel and people to deal with government and First Nations. Brokerage companies are usually involved. RW: That leads me into my second ques- tion, the Venture Exchange bottomed out around November the 20th, and it's been steadily rising. In addition, there have been quite a few junior explorer financings, mergers and investments by other mining companies. Do you think that this will result in an increased exploration activity in BC? KJ: The financial markets have been quite interesting this year and the way in which financings are taking place has changed. Yes, you're correct in saying that many of the majors, or mid-tiers are invest- ing in the juniors. I very much hope that results in further exploration. What you're not seeing so much now is the traditional financing, where it's fully filled by individual investors split between retail and institutional holdings. You are seeing the majors and mid-tiers investing in the juniors. We are also seeing high net worth individuals investing in the juniors. Having said that, it has still very much been a struggle for juniors to finance. And that, I think, partially is due to commodity prices. Positive commodity prices, which we're starting to see now, impact the bot- tom line of the majors quite a bit more rapidly than it does the juniors because they have production and sale which, of course, is directly related to commod- ity prices. It takes a while for the dollars coming into the majors to roll down to the juniors. So it's nice to see that financings and support from the majors and the mid- tiers is happening. I do think that as time goes on, and hopefully by the upcoming explora- tion season in summer 2020, we'll see an increase in exploration, so fingers crossed, but there certainly are signs of a positive 2020 field season. RW: I have a few questions regarding First Nations on two topics; reconciliation and UNDRIP (United Nations Declaration on the Rights of Indigenous People). Since BC explorers and miners need to deal directly with First Nation bands, sometimes without much government par- ticipation, how would you say they are coping with reconciliation challenges? ASSOCIATION FOR MINERAL EXPLORATION BRITISH COLUMBIA Fostering smooth relationships among explorers, government and First Nations by Ellsworth Dickson Kendra Johnston, President and CEO of AMEBC. ORGANIZATION'S FOUR YEAR PLAN (2018-2022) • Maintain access to the current land base • Increase regulatory predictability • Increase economic viability and confidence • Integrate social responsibility • Promote relevant and useful geoscience

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